• The Journal of Society for e-Business Studies
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• v.15 no.3
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• pp.163-181
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• 2010

As a part of efforts to reduce the global emissions of greenhouse gases, the Kyoto Protocol was signed by major developed countries ("Annex I" countries). According to the Kyoto protocol, the Emission Trading Scheme that derives a trading market of the $CO_2$ emission rights is appeared. It causes that business institutions give lots of efforts to reduce $CO_2$ by using new environmentally sound technologies or increasing efficiency in production. On the while there have been several studies trying to develop a methodology to measure the effect of $CO_2$ reduction and its monetary value. In this research we suggest ECRE (Evaluation of $CO_2$ Reduction in E-transformation) model which can measure the $CO_2$ reduction effect through the introduction of G2B system. ECRC model was developed based on the IPCC methodology. ECRC model measures the two major effects of the $CO_2$ reduction which are '$CO_2$ reduction effect from transportation' and '$CO_2$ reduction effect from the decrease of paper use'. In this paper, we calculate the economic effect of $CO_2$ reduction with the case of the G2B system in Korea. This research suggests a basic methodology to measure the $CO_2$ reduction performance for the e-transformed institution.