• Environmental Engineering Research
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• v.21 no.1
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• pp.91-98
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• 2016

Along with China's increasing share in global total $CO_2$ emissions, there is a necessity for China to shoulder large emission-mitigating responsibility. The appropriate allocation of $CO_2$ emission quotas can build up a solid foundation for future emissions trading. In views of originality, an optimized approach to determine $CO_2$ emissions allocation efficiency based on the zero sum gains data envelopment analysis (ZSG-DEA) method is proposed. This paper uses a non-radial ZSG-DEA model to allocate $CO_2$ emissions between different Chinese provinces by 2020 and treats $CO_2$ as the undesirable output variable. Through the calculation of efficiency allocation amounts of provincial $CO_2$ emissions, all provinces are on the ZSG-DEA efficiency frontier. The allocation results indicate that the cumulative optimal amounts of $CO_2$ emissions in 2020 were higher than the actual amounts in 13 provinces, and lower in other 17 provinces, and show that different provinces have to shoulder different mitigation burdens in terms of emission reduction.

• Environmental and Resource Economics Review
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• v.20 no.2
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• pp.167-198
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• 2011

The Korean government recently announced greenhouse gases (GHG) emissions reduction target as 30% of 2020 business as usual (BAU) emission projection. As carbon emissions trading is widely used to achieve reductions in the emissions of pollutants, this study deals with the sectoral allocation of initial carbon emission permits in Korea. This research tests the effectiveness of a variety of allocation rules based on the bankruptcy problem in cooperative game theory and hybrid input-output tables which combines environmental statistics with input-output tables. The impact of initial emission permits allocation on economic growth is also analyzed through green growth accounting. According to the analysis result, annual GDP growth rate of Korea is expected to be 4.03%, 4.23%, and 3.67% under Proportional, Constrained Equal Awards, and Constrained Equal Losses rules, respectively. These rates are approximately from 0.69% points to 0.13% points lower than the growth rate of 4.36% without compulsory $CO_2$ reduction. Thus, CEA rule is the most favorable in terms of GDP growth. This study confirms the importance of industry level study on the carbon reduction plan and initial carbon emission permits should reflect the characteristic of each industry.

• Environmental Sciences Bulletin of The Korean Environmental Sciences Society
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• v.4 no.1
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• pp.11-23
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• 2000

Photochemical air quality models are essential tools in predicting future air quality and assessing air pollution control strategies. To evaluate air quality using a photochemical air quality model, emission inventories are important inputs to these models. Since most emission inventories are provided at a county-level, these emission inventories need to be geographically allocated to the computational grid cells of the model prior to running the model. The conventional method for the spatial allocation of these emissions uses "spatial surrogate indicators", such as population for mobile source emissions and county area for biogenic source emissions. In order to examine the applicability of such approximations, more detailed spatial surrogate indicators were developed using Geographic Information System(GIS) tools to improve the spatial allocation of mobile and boigenic source emissions, The proposed spatial surrogate indicators appear to be more appropriate than conventional spatial surrogate indicators in allocating mobile and biogenic source emissions. However, they did not provide a substantial improvement in predicting ground-level ozone(O3) concentrations. As for the carbon monoxide(CO) concentration predictions, certain differences between the conventional and new spatial allocation methods were found, yet a detailed model performance evaluation was prevented due to a lack of sufficient observed data. The use of the developed spatial surrogate indicators led to higher O3 and CO concentration estimates in the biogenic source emission allocation than in the mobile source emission allocation.llocation.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.21 no.5
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• pp.311-318
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• 2009

In previous study, a new allocation methodology of common cost on multi-product have been suggested. The aim of this study is to suggest the methodology that allocates an environment pollution cost including carbon emission cost to each cost of multi-product. For this study, a supposed multi-energy system composed of twenty kinds of systems was made. The multi-energy system produces eighteen kinds of outputs that are electricity, steam, hot water, chilled water, ice, warm air, and cooling air from seven kinds of energy source that are LNG, coil, geothermal energy, sun heat, hydrogen, bio-mass, and waste. The new methodology was applied to the multi-energy system in order to allocate the environment pollution cost to each production cost, and twenty seven equations were induced. From this result, it is concluded that this methodology can estimate each unit cost and allocate each cost flow in any product of any energy system.

• Korean Chemical Engineering Research
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• v.60 no.4
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• pp.478-485
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• 2022

The certification performance issued through an external business is sold to companies subject to the emission trading system allocation, and the company subject to the allocation can secure the quota by converting the purchased external business certification performance into offset credits. In this methodology, when fossil fuels that used existing oil boilers (by oil type) were replaced with boilers using propane gas with a relatively low carbon content, the amount of carbon dioxide emission reduction by oil type was recognized. As an initial analysis to make up for the insufficient quota of large corporations, the amount of carbon reduction emissions and emission rights trading was calculated.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.107-110
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• 2013

Recently, Korea parliament legislated the Low Carbon Green Growth Act (April, 2012) and approved a bill (May, 2012) to start carbon emission trading system in 2015. It means that for the first time, government would regulate the amounts of carbon emission in private entities, and private entities should attain predefined emission reduction goals by implementing clean development mechanism (CDM) project or buy the Certified Emission Reductions (CERs) from the trading market to avoid penalty. Under these circumstances, it is not easy for them to determine when or how to implement the CDM project because the governmental energy policies about the level of governmental subsidies, periods for free emission allocation, etc. are still under discussion and the future price of the CERs is quite uncertain. Thus, this study presents a real-option based model to assess the financial viability of the CDM project which switches bunker-C oil to liquefied natural gas (LNG). The proposed model is expected to assist private entities in establishing the investment strategy for CDM project under uncertain government energy policies.

• Environmental and Resource Economics Review
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• v.31 no.4
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• pp.733-753
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• 2022

Korean government established the Nationally Determined Contribution (NDC) in 2015. After revising in 2019, the government updated an enhanced target at the end of last year. When the NDC is addressed, the emission targets of each sector, such as power generation, industry, and buildings, are also set. This paper analyzes the emission target of each sector by applying a claims problem or bankruptcy problem developed from cooperative game theory. The five allocation rules from a claims problem are introduced and the properties of each rule are considered axiomatically. This study applies the five rules on allocating carbon emission by sector under the NDC target and compares the results with the announced government target. For the power generation sector, the government target is set lower than the emissions allocated by the five rules. On the other hand, the government target for the industry sector is higher than the results of the five rules. In other sectors, the government's targets are similar to the results of the rule that allocates emissions in proportion to each claim.

• Environmental and Resource Economics Review
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• v.21 no.4
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• pp.809-850
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• 2012

A linkage of emissions trading schemes among Korea, China and Japan demonstrates overall increase in gross domestic product (GDP). However, it also demonstrates reductions in household consumption, and the impact of integration could be very unbalanced between the countries. In particular, the reductions in domestic marginal costs are high in both Korea and Japan. Therefore, household consumptions in the two countries decrease despite increases in GDP because Korea and Japan will be purchasers of emissions rights. China, on the other hand, will experience the opposite. The unbalanced impacts on real household consumptions are intensified when emission credits are allocated via paid auctions instead of free allocation. This was demonstrated to be the case because the circumstances of three countries are intensified when using a paid emissions credit allocation scheme, and their differences could potentially hinder the cooperation between the three countries. Under the free allocation scheme, the emission trading schemes' unbalanced impacts on consumption could be mitigated, but unavoidable negative impacts of free allocation schemes are also serious. Based on the analysis results, Korea, China, and Japan will individually face complicated impacts if their carbon markets are integrated. Although the GDP of three countries will increase as a result of carbon market integration, the benefits of integration will surely be unbalanced, and the three countries will experience negative impacts in terms of actual consumption or employment. In particular, increases in income and consumption, reductions in employment, and energy dependence by credit purchasers (Japan and Korea) and production reduction and possibility of offshoring faced by revenue producing countries (China) could serve as a barrier to carbon market integration. To maximize the positive influences of carbon market integration while reducing the risks of negative side effects, the development and application of complimentary policy tools, such as import duties or discounts for emissions credits, are required.

• Environmental and Resource Economics Review
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• v.30 no.1
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• pp.129-167
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• 2021

The emission trading system is an essential policy for reducing greenhouse gas emissions and converting low-carbon society. EU ETS is a good benchmark that is ahead of Korea's emission trading system in terms of operating period and design know-how. Therefore, this study focused on the key design elements of EU ETS phase 4 such as total emission allowances issued (Cap), free allocation method, carbon leakage list, market stability reserve, and innovation supporting system. In addition, we analyzed the impact of key design elements and their changes during EU ETS Phase 1 to 4 on the design and operation of Korea emission trading system in the future. First of all, the expected impact on the design of Korea emission trading system is to increase three demands: preparing benchmark renewal plans, establishing criteria for selecting free allocation industries that reflect domestic industrial structure and characteristics and introducing two-stage evaluations for free allocation industries, and preparing specific plan to support innovation and industries using allowance auction revenues. The next three impacts on the operation of Korea emission trading system are the increased needs for objective and in-depth impact assessment of plan and amendments, provision of system stability and response opportunities by quickly confirming plan and amendments prior to the implementation, and coordination of the emission trading system governance and stakeholder participation encouragement.

• Journal of the Korean earth science society
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• v.36 no.1
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• pp.36-50
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• 2015

The purpose of this study is to assign emission source profiles of volatile organic compounds (VOCs) and particulate matters (PMs) for chemical speciation, and to correct the temporal allocation factor and the chemical speciation of source profiles according to the source classification code within the sparse matrix operator kernel emission system (SMOKE) in the Seoul metropolitan area. The chemical speciation from the source profiles of VOCs such as gasoline, diesel vapor, coating, dry cleaning and LPG include 12 and 34 species for the carbon bond IV (CBIV) chemical mechanism and the statewide air pollution research center 99 (SAPRC99) chemical mechanism, respectively. Also, the chemical speciation of PM2.5 such as soil, road dust, gasoline and diesel vehicles, industrial source, municipal incinerator, coal fired, power plant, biomass burning and marine was allocated to 5 species of fine PM, organic carbon, elementary carbon, $NO_3{^-}$, and $SO_4{^2-}$. In addition, temporal profiles for point and line sources were obtained by using the stack telemetry system (TMS) and hourly traffic flows in the Seoul metropolitan area for 2007. In particular, the temporal allocation factor for the ozone modeling at point sources was estimated based on $NO_X$ emission inventories of the stack TMS data.