• Journal of Energy Engineering
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• v.24 no.1
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• pp.32-41
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• 2015

The Metropolitan Area Green Heat Project (MAGHP), which collects unused heat gathered from power plants, steel works, landfills in western Metropolitan area and distribute it to integrated energy business (IEB) companies, is proposed for the purpose of enhancing energy efficiency and providing low-price heat for IEB companies. Therefore, in order to decide on whether to initiate the MAGHP, the economic feasibility analysis of the project is widely demanded. This paper attempts to consider and measure four economic benefits: heat supply benefit, production cost reduction benefit, greenhouse gas mitigation benefit, and air quality improvement benefit. In addition, the paper tries to conduct the economic feasibility analysis. The project requires three-year investment and thirty-year operation. Three important findings emerge from the analysis. First, its net present value is computed to be 1,269 billion won and more than zero. Second, its benefit/cost ratio is calculated to be 1.72 and bigger than 1.0. Third, its internal rate of return is estimated to be 24.26% and larger than the social rate of return, 5.5%. In conclusion, the MAGHP is socially profitable and should be conducted immediately.

• Economic and Environmental Geology
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• v.46 no.3
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• pp.247-256
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• 2013

In order to improve the quality assurance of the disaster mitigation projects, the economic effect of these projects in the hazardous areas was analysed. Eight project sites were selected for analyses based on the disaster data during the previous 10 years, and the investment effect was evaluated using a benefit cost ratio (B/C). The benefit was estimated using the historical disaster data and presumed to continue for 30 years, while the cost was assumed with the total project cost. Analysis results indicate the B/C ratio is larger than 1 in the difference range, depending on factors such as impact areas and discount rates. According to the analysis results, the average B/C of the eight projects is 4.1 with assuming the discount rate of 4% and the impact diameter of 5 km, which implies that a disaster management project in hazardous areas will give the positive investment effects.

• Journal of the Korean Society for Marine Environment & Energy
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• v.17 no.4
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• pp.274-282
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• 2014

The Korean government is considering the implementation of the marine debris pollution abatement technology program (MDPATP) to mitigate the negative impacts of marine debris and systematically manage marine debris through scientific researches such as monitoring and environmental impact assessment of marine debris. In this regard, this study attempts to analyze the economic feasibility of the MDPATP in order to provide policy-maker with useful information. To this end, the indices for economic feasibility such as net present value (NPV), benefit/cost (B/C) ratio, and internal rate of return (IRR) are presented. The results show that NPV, B/C ratio, and IRR are computed to be 45.7 billion won, 2.72, and 17.12%, respectively, which are bigger than 0, 1.0, and 5.5%, and that the MDPATP passes the cost-benefit analysis. Thus, it is concluded that it is socially profitable to conduct the MDPATP.

• Journal of Korean Society of Transportation
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• v.30 no.4
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• pp.7-19
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• 2012

In this study of estimating the benefits of environmental materials, the CVM method used in environmental economics was applied to estimate the value of pedestrian environment improvement. After finding the Willingness To Pay (WTP) level of residents through CVM, this study attempts to calculate quantitative benefits from the pedestrian environment improvement. In this study, a survey targeting the inhabitants in Seongbuk-gu adjacent to a business area was carried out for pedestrian environment improvement considering form of payment, willingness to pay and such by establishing and showing several virtual scenarios depicting a quiet and comfortable pedestrian environment. As a result, the willingness to pay level of the Seongbuk-gu residents was 627 won of surcharge for pedestrian environment improvement per month. Additionally, the annual total benefits by pedestrian environment improvement was estimated within a range from 1,247,516,820 won to 286,305,110 won.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.31 no.1D
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• pp.7-15
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• 2011

The travel time value is important factor for the evaluation of feasibility the transportation facility investment. The existing method for calculation of the travel time for each mode uses daily average trip purpose. So the value of travel time is constant because it is estimated with only daily average proportion. This daily constant time value can distort the results of future demands of toll roads or economic appraisals for the projects. The proportion of the trip purpose varies by time periods. Accordingly the value of travel time also varies by time periods. In this study, times periods are classified as morning peak, evening peak, business time off-peak, and non-business time off-peak. And trip purpose proportions are sorted by each time period from raw data of Seoul household trip study, then the value of travel time for each time period is estimated with these sorted purpose proportions. A case study of Seoul Jung-gu and Yongsan-gu performed with newly estimated time value by time periods. The result of benefit calculation with the daily constant time value is overestimated approximately annual 2.5 billion Won compared by time values by time periods. The demands of toll roads are also overestimated with the existing daily constant time value by daily 3,500 vehicles and total revenue of toll roads are overestimated by annually 1 billion Won. In conclusion, the value of travel time by each time period enables the more precise economic evaluation of the transportation facility investment projects, mode choice behavior, and route choice behavior especially for toll roads.

• Journal of Korean Society of Transportation
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• v.22 no.5
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• pp.139-149
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• 2004

As the expansion of road capacity has become impractical in many urban areas, congestion pricing has been widely considered as an effective method to reduce urban traffic congestion in recent years. The principal reason is that the congestion pricing may lead the user equilibrium (UE) flow pattern to system optimum (SO) pattern in road network. In the context of network equilibrium, the link tolls according to the marginal cost pricing principle can user an UE flow to a SO pattern. Thus, the pricing method offers an efficient tool for moving toward system optimal traffic conditions on the network. This paper proposes a continuous network design program (CNDP) in network equilibrium condition, in order to find optimal congestion toll for maximizing net economic benefit (NEB). The model could be formulated as a bi-level program with continuous variable(congestion toll) such that the upper level problem is for maximizing the NEB in elastic demand, while the lower level is for describing route choice of road users. The bi-level CNDP is intrinsically nonlinear, non-convex, and hence it might be difficult to solve. So, we suggest a heuristic solution algorithm, which adopt derivative information of link flow with respect to design parameter, or congestion toll. Two example networks are used for test of the model proposed in the paper.

• Journal of Korean Society of Disaster and Security
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• v.12 no.4
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• pp.27-41
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• 2019

To analyze the effectiveness of the safety e-reporting system, the present study carried out analysis of safety e-reporting data reported between September 2014 and July 2019, and selected items for measuring the effectiveness of safety e-reporting. Using these items, the effects of adopting the reporting system for the four major parking violations was analyzed, alongside an analysis of effects in terms of traffic accidents using the unit model. When we count the securement of the tax revenue through measures such as charging fines as the beneficial factor per case, the estimation of the benefit is around 62,000 KRW per case. Summing the two factors up, the total value of citizen's reports pertaining to the big four parking violations is about 275,000 KRW per case. Most of the reports made through the Safety e-Report system are about traffic and facilities. When we calculate the total annual benefit with the representative reporting value defined with traffic and facilities, the system received a total of 1,164,439 cases from 2014 to 2019, while citizens reported 52,721 cases for the big four parking violations from April to July 2019. As the value of a safety report is around the net benefit for last five years is around 27,340,000,000 KRW.

• The Journal of The Korea Institute of Intelligent Transport Systems
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• v.22 no.5
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• pp.19-29
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• 2023

The accident rate in South Korea is simply classified according to the road type and the number of lanes, but other countries apply various factors affect accidents. In this study, national highways where accidents occurred were divided into urban, rural, older, and modern roads using TAAS(Traffic Accident Analysis System) data, and a model of accident costs savings is suggested. As a result of analyzing 1,416.2 km, the fatality rate(person/100mil-vehicle·km) was 4.21 for urban-older, 1.37 for urban-modern, 2.18 for rural-older, and 0.99 for rural-modern roads. The rates of urban roads had a higher result than rural. The injury rate(person/100mil-vehicle·km) for urban-older was 182.63, that for urban-modern was 103.42, that for rural-older was 67.44, and that for rural-modern road was 42.96, which showed a similar pattern to fatality rates. Accident rates of a modern road were much lower than the KDI Guideline. The benefit of applying the result of this study was calculated and the valuation of accident costs savings is increased from 0.6% to 14.1%, while B/C is improved from 0.626 to 0.724.

• Journal of Korean Society of Transportation
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• v.27 no.5
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• pp.163-168
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• 2009

Travel time reduction is a benefit in economic analysis. Freight transportation time reduction benefits influence the logistics industry. The objectives of this paper are to estimate the Value of Time (VOT) for transportation time reduction with logit methodology. The data of Gyeonggi-do's domestic road freight transport in 2007 are used. VOT was estimated for five commodities. An average VOT of 19,946 won/vehicle-hr was calculated; transport of electronic parts had the highest VOT. This study will help provide direction for improving Korea's road infrastructure for freight.

• Environmental and Resource Economics Review
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• v.22 no.1
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• pp.147-177
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• 2013

Annual total values and thereby assets values of natural resources are determined by sample household WTP estimates and the extent of market. In the current domestic practice of CVM, total numbers of national households were used as the target population to measure total economic values including non-use values. This study proposed an alternative method of calculating potential user groups based on distributions of residential area of visitors in the sample using 4 provincial parks in the Chon Buk area as cases. The sample mean of WTP of Moak Mt. visitors, who are mostly from the nearby Chon Buk provincial area, was estimated to be about 8,215 won. On the other hand, the mean of WTP of Sun Woon Mt., whose visitors are evenly distributed from all over the country, was about 4,693 won. When applied national households as the target population, annual total benefits and thereby asset values of Moak Mt. was high enough to be 86 billion and 1.6 trillion won respectively. However, those of Sun Woon Mt. was low to be 52 billion and 1 trillion. On the contrary, when applied potential user groups of each park as the extent of market, annual total benefits and asset values of Sun Woon Mt. was reversed to be high--23 billion won and 400 billion won respectively. However, those of Moak Mt. was lowered to be 10 billion won and 200 billion won. Furthermore, asset values of the same park were differed by 2 to 8 times according to the way of setting the extent of market.