• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.747-784
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• 2014

Many countries have implemented a variety of climate and energy policies to reduce greenhouse gas emissions and expand renewable energy production. The ultimate goals of those policies are associated with transition to a low-carbon economy that aims to combat climate change and economic growth. This study aims to examine empirically if the countries which implement overlapping climate policies and renewable energy policies show additional reduction of the GHG emissions than the countries which implement single climate or renewable energy policy. The result shows that overlapping policies contribute to reduce additional GHG but not all cases. In particular, only overlapping policies mixing 'ETS and RPS(renewable portfolio standards)' and 'Carbon Tax and FIT(Feed-in Tariff)' can lead to additional reduction of GHG emissions.

• Environmental and Resource Economics Review
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• v.23 no.3
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• pp.453-472
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• 2014

Analyzing the effects of carbon emissions trading, which is scheduled to be introduced in Korea in 2015, requires an accurate assessment of $CO_2$ abatement costs by both industries and firms. Firms faced with regulatory constraints are unlikely to minimize their production costs due to rising production costs caused by allocative inefficiency of inputs. The use of a distance function would results in underestimation of $CO_2$ abatement costs, because it fails to capture the allocative distortion costs. Recognizing the disadvantage of the previous approach, first, this paper tests for allocative efficiency of input for the Korean steel industry over the period 1990-2010, then derives the marginal $CO_2$ abatement costs by applying a cost function approach. The hypothesis of allocative efficiency in inputs is rejected and the steel industry pays an annual average cost of 92,000 won in removing an additional ton of $CO_2$ over the sample period.

• Environmental and Resource Economics Review
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• v.31 no.1
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• pp.51-83
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• 2022

Renewable Portfolio Standards (RPS), one of the most commonly adopted regulation for renewable energy expansion since 2012, has the obvious advantage of inducing competition in power generation source and alleviating the government's financial burden. However, the abuse of credit multipliers and the use of national Renewable Energy Credits (RECs) have resulted in the distortion of RPS as a quantitative control policy. Just as no face value 10 years ago can hold its real value, this paper highlights for the first time that 27.8% of total renewable obligations over the total RPS period were not actually met due to REC inflation and the consequent decline in the value of renewable energy generation. In addition, the distortion of face/real value of REC causes problems in interoperability with other government policies such as RE100 and Emission Trading System.

• Environmental and Resource Economics Review
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• v.19 no.4
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• pp.829-852
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• 2010

The investment in Clean Development Mechanism (CDM) projects is increasing rapidly as the first implementation period began in 2008. This paper examines on the optimal level of primary Certified Emission Reduction (CER) price, subsidiary original projects investment cost and expected issues CER per year, using UNFCCC CDM Project Design Document (PDD) data. Real option model is developed to incorporate a case where the investment is irreversible and underlying asset price is uncertainty. This study employs Real option approach which allow the optimal level regard as economic feasibility of CER price has analyzed with NPV (Net Present Value) and Black-Scholes call option(Real option) value. Finally, CER supply curve and price elasticity of supply are estimated.

• Plant Journal
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• v.18 no.2
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• pp.46-51
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• 2022

As GHG reduction becomes a major global issue, the importance and interest of ETS is increasing. Korea experienced positive effects of the system since the introduction of ETS in 2015, but also faced various problems. The focus of this study is on the issue of applying the ETS system to the group energy of industrial complexes. The group energy of industrial complexes is a unique industrial form of Korea that cannot be found in the world. Therefore, if the system is implemented in the same way as the preceding countries, it will inevitably cause problems. In particular, the group energy of industrial complexes has the characteristic that the conditions and amount of heat supplied are dtermined according to the demands of customers and the amount of power generation is determined accordingly. We investigated how differenct temperatures of heat produced in cogeneration affect carbon credit calculations.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.56 no.3
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• pp.481-490
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• 2007

WASP which is used to plan generation expansion has disadvantages that can't manage environmental factors and regional supply-demand planning. But with the effectuation of the United Nations Framework Convention on Climate Change (UNFCCC) and Kyoto Protocol, it is expected that reducing greenhouse gases affects power system in its long-term generation expansion planning. Therefore national countermeasures is needed. This paper formulates a mathematical model considering CO2 emission constraints and Emission Trading that will be enforced. This model is based on the MEFISET (Model for Economic Feasibility of Interstate Electrical Ties) which was made by Korea Energy Economics Institute and Hong-ik university and manages generation expansion planning. And this mathematical model is verified by studying a case system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.329-351
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• 2013

Since the Kyoto Protocol was released in 2005, there has been a number of mechanisms about funding and how to allocate the burdens. The UNFCCC(United Nations Framework Convention on Climate Change)have discussed establishing an international fund to support the reduction of a greenhouse gas. As the availability of adaption finance for developing countries increase, it's needed for a way of prioritizing countries. This article analyzes the carbon reduction system that includes a emission trading scheme, a carbon tax and examines GCF(Green Climate Fund)'s role and needs. A solution to finance Green Climate Fund is more preferred a harmonized carbon tax that across all nations with carbon tax. Especially the role of industrialized countries is important that based on their historical responsibility for fossil fuel emission. That is, they should get more shares of the global costs than developing countries.

• Proceedings of the KIEE Conference
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• 2006.07a
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• pp.343-344
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• 2006

Consumption of fossil fuel has been increasing steadily, and it has seriously affected environment. Due to this situation, UN establish ed UNFCC (United rations Framework Convention on Climate Change), and since Feb. 2005, Kyoto Protocol has come into effect for UNFCC obligation. In Korean power system, coal and oil thermal generation emitting large CO2 form about 46% of total generation. Moreover since electricity dem and has been increasing continuously, various alternatives should be designed to comply with Kyoto Protocol. In this paper, we analyze changes of each GENCO's generation pattern and resource planning under CO2 emission constraints. For this analysis, we incorporate CO2 emission constraints and the emission trading mechanism into the conventional OPF model.

• Proceedings of the KIEE Conference
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• 2006.11a
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• pp.46-48
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• 2006

WASP which is used to plan generation expansion has disadvantages that can't manage environmental factors and regional supply-demand planning. But with the effectuation of the United Nations Framework Convention on Climate Change (UNFCCC) and Kyoto Protocol, it is expected that reducing greenhouse gases affects power system in its long-term generation expansion planning. Therefore national countermeasures is needed. This paper formulates a mathematical model considering CO2 emission constraints and Emission Trading that will be enforced. This model is based on the ORIRES which was made by ESI, Russia and manages generation expansion planning. And this mathematical model is verified by studying a case system.

• Proceedings of the KIEE Conference
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• 2007.07a
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• pp.816-817
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• 2007

As UNFCC(United Nations Framework Convention on Climate Change) is enhanced, Korea will perform a CO2 reduction duty. The CO2 reduction duty will effect Korea power system because coal and oil thermal generations emit large CO2 form about 46% of total CO2 emission. Moreover various alternatives should be designed to comply with CO2 reduction duty. In this paper, we analysis resource planning considering CO2 emission constraints and emission trading. And we analysis resource planning under using LP(Linear Programing) and MIP(Mixed Integer Programing).