• Journal of Environmental Policy
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• v.12 no.4
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• pp.93-117
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• 2013

We analyze the optimal hedge ratio and hedge effectiveness with different periodic times between spot and futures on EUA and CER based on EU-ETS. The Main finding are as follows. The first, hedging model which considers the time-varying variance is not more accurate than non-time-varying hedging models. The second, optimal hedge ratios are different even though hedge effectiveness is similar for the hedging purpose. The third, hedge effectiveness has uncertainty if hedge period is short. In case of EUA it needs to over 6 weeks and CER needs to over 7 weeks. The fourth, cross hedge with CER futures is not suitable for profit ratios.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.19 no.3
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• pp.61-68
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• 2011

유럽연합(EU)은 2012년부터 항공산업에 대해 탄소배출권 거래제도를 적용할 예정이다. 따라서 유럽공항에서 출발 및 도착하는 모든 국제선과 국내선 항공편에 대해 탄소세가 부과될 것이며 이는 한국도 예외는 아니다. 또한 유럽을 운항하는 경우 장거리에 해당되어 중단거리를 운항하는 항공기들에 비해 총 탄소배출량이 더 많으므로 비용부담이 커질 것으로 예상된다. 본 연구는 EU-ETS로 인한 탄소세가 항공요금에 반영된다면 항공여객들이 어느 정도 민감하게 반응할 것이며 이러한 점들이 궁극적으로 한국의 항공시장에 어떤 영향을 미칠 것인지를 파악해 보는데 목적이 있다. 이를 위해 인천국제공항에서 프랑크푸르트 국제공항 노선을 이용하는 승객을 대상으로 직항노선과 중동지역 경유노선을 비교하여 EU-ETS 가격이 반영된 항공요금에 대한 반응을 Revealed Preference (RP)와 Stated Preference (SP) 설문자료와 Logit Model을 사용하여 분석하였다. 본 연구결과는 한국의 항공산업은 물론 2012년부터 부과될 EU-ETS에 대한 항공사들의 전략개발에 도움이 될 것이다.

• Environmental and Resource Economics Review
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• v.22 no.4
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• pp.759-784
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• 2013

Participants can use the allowances and offsets for implementing the compliance in the Emissions Trading Scheme(ETS). There are alternative commodities which are different prices it gives the opportunities to reduce the compliance costs and get the arbitrage. This study analyzes the price driver of spread which is the difference between EUA and sCER using AR-GARCH model, EUA and CER during the Phase 2 in EU ETS. The results show that there are common elements which impacts the EUA and sCER and also different elements between them. EUA and sCER get the effects from energy price and economic criteria such as coal price and financial crisis as common elements. However them get the effects from electric price, policy criteria such as restricted CERs and difference price between EUA and ERU price as different elements. The results shows that spread will be widen if energy price increase, especially oil and electric price give more impacts the spreads. This study has the means that it explains the reason why the spreads will broaden sharply in 2012. And it also suggests the price driver of spread during the whole period of Phase 2. In addition, this study shows that political aspects maybe become the main criteria of price change with structural elements shch as energy price in Korea ETS which starts in 2015.

• JOURNAL OF ELECTRICAL WORLD
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• s.382
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• pp.66-67
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• 2008

• Management & Information Systems Review
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• v.33 no.3
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• pp.93-104
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• 2014

This study investigates price discovery between BlueNext spot and futures in EU ETS carbon emission markets using vector error correction model, GG and Hasbruck information ratio. Especially EUA is European Union Allowances traded on the Emissions Trading Scheme. This emission asset attracts and increasing attention among operators, investors and brokers on emission markets. In this study, we found BlueNext spot and EUA futures market are cointegrated. Following the preceding studies, we judged that EUA futures market contribute to the price discovery process than BlueNext spot market when this GG and Hasbrouck information ratio for BlueNext market are larger than 0.5. In other words, the futures market of EUA plays a more dominant role in price discovery than the spot market.

• Journal of Energy Engineering
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• v.16 no.1 s.49
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• pp.15-21
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• 2007

In order to solve problems of global warming, many policies and measures has been implemented in various countries. In January 2005, the European Union Emission Trading Scheme officially started. In order to take it into action, the EU ETS stated that all members must submit the national allocation plan including the national's total allowances, allowances for installations, reserve for new entrants, etc. In the process of this decision-making, it was also stated that problems related with early action should be solved by each member state at its option. This paper is a study on necessity of compensation for early action and its limitation of its practices. With a comparative study on dealing with early action in the key nations including Germany, the Netherlands and United Kingdom, we can get insights and strategies for effective processes of dealing with early action and the direction for harmonizing data collection and allocation rules.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.21 no.2
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• pp.62-69
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• 2013

The introduction of aviation into the EU-ETS has faced significant opposition from many ICAO member States. Accordingly a global solution through ICAO is in progress. This paper traces the progress of works done by the HGCC in the area of global aviation aspiration goals aiming for the submission to the 38th Session of the ICAO Assembly. Furthermore, devices for calculating the carbon dioxide emissions from flights have been developed by several agencies including international organizations, governments, airlines and nongovernmental organizations. These carbon calculators, however, introduce too many assumptions to simplify the calculation process. This study assesses carbon calculators for aviation emissions and suggests a modified calculation methodology using the pre-existing computer reservation system for better accuracy.

• Korea Trade Review
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• v.46 no.6
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• pp.143-162
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• 2021

Although awareness of the need to respond to climate change is expanding, various controversies are being raised about the EU's Carbon Border Adjustment Mechanism (CBAM). The EU has announced that they will implement CBAM as responding to climate change and preventing carbon leakage. However, the questions are raised as to whether it is actually effective in preventing carbon leakage. Above all, CBAM has its own contradictions, thus it could not be easy to implement. This is because the possibility of violation of the WTO principles is high and there are many issues in implementation. Emission Trading System (ETS) based on CBAM differs by country, and international linkage is not easy in that ETS is not a widely used system worldwide. The EU's CBAM is highly likely to be used as a trade restrictive tool, and is inevitably subject to trade disputes in that it imposes additional tariffs. The unilateral implementation of CBAM should be restrained unless support from the international community and consideration for developing countries are not taken into account.

• Environmental and Resource Economics Review
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• v.19 no.4
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• pp.875-896
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• 2010

Using the difference in differences (DID) estimation method, this paper analyzes the effect of European Union's Emission Trading Scheme (EU ETS) on the reduction of per capita $CO_2$ emission among the twenty five participating countries. For this, the panel dataset of forty two European countries for the period 1990~2007 is constructed. Special attention is paid to the bias of the standard errors in the DID estimation due to the presence of serial correlation in the error terms. The results shows quite a robust effect of EU ETS on the reduction of per capita $CO_2$ emission among the participating countries regardless of the calculation methods of standard errors. The results also shows that the increased implicit tax rate on energy has a robust effect on the reduction of per capita $CO_2$ emission. On the contrary, the estimation results regarding the effects of per capita GDP and population density on the per capita $CO_2$ emission seem inconsistent. In particular, the environmental Kuznets curve is not statistically supported with the use of robust standard errors.

• Journal of the Korean Society for Railway
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• v.9 no.2 s.31
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• pp.19-24
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• 2006

Green gas emissions Trading System(ETS) came into effect in the Europe last year 2005. All transport modes have tried to reduce green gas emission and EU member countries are promoting the use of environmental friendly transport mode to avoid economic loss due to green gas emission. Besides ETS, rapidly rising of oil price and peak oil urge to invest more in the environmental friendly public transport mode and to discourage the use of private cars. The operation of KTX is estimated to bring external cost reduction up to 570 bil. won in 2004 based on European external unit costs of transport modes. This result implies that the expansion of high speed rail network and reconsideration of East-West high speed rail network which is not considered because of weak economic validity is required.