• Environmental and Resource Economics Review
• /
• v.24 no.3
• /
• pp.489-522
• /
• 2015

According to Law on Allocation and Trading of GHG Allowances of 2013 in Korea as well as the 2014 National Master Plan for Korean Emissions Trading System, the System should be designed to minimize the change in the market positions of the affected firms. In this paper, we investigate how that principle might become ineffective by the ways of distributing allowances and applying different accounting methods using a Cournot duopoly model. Although the way of allocating allowances freely to firms combined with accounting them for having no values would minimize their market positions, it would not the most cost-effective way of GHG reduction since it does not provide financial market with accurate informations.

• Environmental and Resource Economics Review
• /
• v.24 no.1
• /
• pp.141-164
• /
• 2015

The concept of consumption-based greenhouse gas (GHG) inventory is directly related with the carbon content of international trade. Along the lines of the consumption-based GHG inventory, we investigate domestic and foreign carbon contents embodied in sectoral exports of Korea. In addition to the analysis of carbon content of exports, it is investigated how much share of responsibility for carbon emissions of Korea belongs to each major trading partner of Korea. We also compute the carbon intensities of Korean exports in carbon chain with other trading partners and find some characteristics revealed in Korea's carbon emissions embodied in its exports.

• Journal of Environmental Policy
• /
• v.8 no.1
• /
• pp.1-30
• /
• 2009

Emission trading schemes, exemplified by the EU Emission Trading Scheme, have been playing active roles in mitigating greenhouse gas emissions since the Kyoto Protocol employed an emission trading as one of the cost-effective mechanisms. The objective of this study is to investigate potential integration of forestry offsets in designing an emission trading scheme in South Korea. First, the study found feasible scopes in which forestry sectors can take part by analyzing five emission trading schemes: EU Emission Trading Scheme, Chicago Climate Exchange, New South Wales Greenhouse Gas Abatement Scheme, New Zealand Emission Trading Scheme, and Regional Greenhouse Gas Initiative. The rationale of including forestry offsets in a domestic emission trading scheme was derived from the fact that forestry offset credits can provide cost-effective ways for market participants to commit their emission targets and expand abatement activities through reducing greenhouse gases in other geographical locations as well as other industrial sectors. Even though forestry offset credits have risks induced by their technical complexities in terms of accounting, additionality, and leakage, the integration of forestry offset credits into an emission trading scheme would be able to provide positive opportunities both to forestry sectors and other industrial sectors. In addition, there are technical questions which need to be answered in order to maintain these opportunities.

• Particle and aerosol research
• /
• v.15 no.4
• /
• pp.159-171
• /
• 2019

The cap-and-trade system against the air pollutants in the Seoul Metropolitan Area (SMA), Korea has been implemented since 2008 and will be implemented other areas in Korea on 2020. In this study, to identify the outcome and effectiveness of the cap-and-trade system in the SMA, (1) the rate of change for NOx and SOx emissions, (2) differences between the real emission and allocated amount, and (3) the status of trading are reviewed. It was found that the NOx and SOx emissions from the sources under the cap-and-trade system decreased in the SMA but the reduction was mainly due to the reduction of fuel usage not related to the system. It was found that the average percentage of annual emission in the SMA to the allocated amount between 2008 and 2018 was 66.9% for NOx and 69.3% for SOx, respectively. It suggests that there was over allocation of the emission amounts. The average trading prices in the SMA were 0.193 $/kg for NOx and 0.128 $/kg for SOx, far lower than those in RECLAIM, 131.942 $/kg and 81.677 $/kg, respectively. It was suggested that (1) the cap system for NOx and SOx emissions should be implemented only for the area with high emission ratio from large point sources, (2) the trade system is not suitable for the effective implementation of the cap system, and (3) Korean government should not allow over allocation in order to ensure sound market function without delaying the introduction of technology.

• Environmental Engineering Research
• /
• v.21 no.4
• /
• pp.409-419
• /
• 2016

As a major energy consumption province, the issue about the carbon emissions in Hebei Province, China has been concerned by the government. The carbon emissions can be effectively reduced due to a more rational energy consumption structure. Thus, in this paper the constraint of low carbon emissions is considered as a foundation and four energies--coal, petroleum, natural gas and electricity including wind power, nuclear power and hydro-power etc are selected as the main analysis objects of the adjustment of energy structure. This paper takes energy cost minimum and carbon trading cost minimum as the objective functions based on the economic growth, energy saving and emission reduction targets and constructs an optimization model of energy consumption structure. And empirical research about energy consumption structure optimization in 2015 and 2020 is carried out based on the energy consumption data in Hebei Province, China during the period 1995-2013, which indicates that the energy consumption in Hebei dominated by coal cannot be replaced in the next seven years, from 2014 to 2020, when the coal consumption proportion is still up to 85.93%. Finally, the corresponding policy suggestions are put forward, according to the results of the energy structure optimization in Hebei Province.

• Proceedings of the Korean Institute of Building Construction Conference
• /
• 2020.06a
• /
• pp.44-45
• /
• 2020

Korea has the fourth highest CO₂ emission among OECD countries in 2018, As of 2019, total greenhouse gas emissions per capita increased by about 98.2% in comparison to 1990. Korea has promised a 37% reduction in greenhouse gas emissions in 2030 from the projected Paris Climate Change Accord. Currently, many countries use the emissions trading system(ETS) for international carbon management. In 2015, ETS has been implemented in Korea, and the importance of calculating CO₂ emissions from construction machinery has increased. So, we require an accurate calculation of the environmental charges through the allocated CERs. Using the CER price and related search keywords, this paper derive about prediction models of CER price and compare and focus on more accurate prediction about CER price. By this method, the budget needed to establish the initial construction process plan can be calculated based on more accurate predicted CER price.

• The Korean Journal of Air & Space Law and Policy
• /
• v.25 no.1
• /
• pp.3-26
• /
• 2010

The European Union(EU) has recently introduced its Directive 2008/101/EC to include aviation in the EU ETS(emissions trading system). As an amendment to Directive 2003/87/EC that regulates reduction of the green house gas(GHG) emissions in Europe in preparation for the Kyoto Protocol, 1997, it obliges both EU and non-EU airline operators to reduce the emission of the carbon dioxide(CO2) significantly in the year 2012 and thereafter from the level they made in 2004 to 2006. Emission allowances allowed free of charge for each airline operator is 97% in the first year 2012 and 95% from 2013 and thereafter from the average annual emissions during historical years 2004 to 2006. Taking into account the rapid growth of air traffic, i.e. 5% in recent years, airlines operating to EU have to reduce their emissions by about 30% in order to meet the requirements of the EU Directive, if not buy the emissions right in the emissions trading market. However, buying quantity is limited to 15% in the year 2012 subject to possible increase from the year 2013. Apart from the hard burden of the airline operators, in particular of those from non-European countries, which is not concern of this paper, the EU Directive has certain legal problems. First, while the Kyoto Protocol of universal application is binding on the Annex I countries of the Climate Change Convention, i.e. developed countries including all Member States of the European Union to reduce GHG at least by 5% in the implementation period from 2008 to 2012 over the 1990 level, non-Annex I countries which are not bound by the Kyoto Protocol see their airlines subjected to aircraft emissions reductions scheme of EU when operating to EU. This is against the provisions of the Kyoto Protocol dealing with the emissions of GHG including CO2, target of the EU Directive. While the Kyoto Protocol mandates ICAO to set up a worldwide scheme for aircraft emissions to contribute to stabilizing GHG concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system, the EU ETS was drawn up outside the framework of the international Civil Aviation Organization(ICAO). Second, EU Directive 2008/101 defines 'aviation activities' as covering 'flights which depart from or arrive in the territory of a Member State to which the [EU] Treaty applies'. While the EU airlines are certainly subject to the EU regulations, obliging non-EU airlines to reduce their emissions even if the emissions are produced during the flight over the high seas and the airspace of the third countries is problematic. The point is whether the EU Directive can be legally applied to extra-territorial behavior of non-EU entities. Third, the EU Directive prescribes 2012 as the first year for implementation. However, the year 2012 is the last year of implementation of the Kyoto Protocol for Annex I countries including members of EU to reduce GHG including the emissions of CO2 coming out from domestic airlines operation. Consequently, EU airlines were already on the reduction scheme of CO2 emissions as long as their domestic operations are concerned from 2008 until the year 2012. But with the implementation of Directive 2008/101 from 2012 for all the airlines, regardless of the status of the country Annex I or not where they are registered, the EU airlines are no longer at the disadvantage compared with the airlines of non-Annex I countries. This unexpected premium for the EU airlines may result in a derogation of the Kyoto Protocol at least for the year 2012. Lastly, as a conclusion, the author shed light briefly on how the Korean aviation authorities are dealing with the EU restrictive measures.

• Environmental and Resource Economics Review
• /
• v.31 no.2
• /
• pp.165-204
• /
• 2022

This study organized data from 2000 to 2014 for 20 grid-connected countries in Europe and analyzed the determinants of carbon emissions through the panel GLS method considering the problem of heteroscedasticity and autocorrelation. At the same time, the effect of introducing ETS was considered by dividing the sample period as of 2005 when the European emission trading system was introduced. Carbon emissions from individual countries were used as dependent variables, and proportion of generation by each source, power self-sufficiency ratio of neighboring countries, power production from resource-holding countries, concentration of power sources, total energy consumption per capita in the industrial sector, tax of electricity, net electricity export per capita, and size of national territory per capita. According to the estimation results, the proportion of nuclear power and renewable energy generation, concentration of power sources, and size of the national territory area per capita had a negative (-) effect on carbon emissions both before and after 2005. On the other hand, the proportion of coal power generation, the power supply and demand rate of neighboring countries, the power production of resource-holding countries, and the total energy consumption per capita in the industrial sector were found to have a positive (+) effect on carbon emissions. In addition, the proportion of gas generation had a negative (-) effect on carbon emissions, and tax of electricity were found to have a positive (+) effect. However, all of these were only significant before 2005. It was found that net electricity export per capita had a negative (-) effect on carbon emissions only after 2005. The results of this study suggest macroscopic strategies to reduce carbon emissions to green growth, suggesting mid- to long-term power mix optimization measures considering the electricity trade market and their role.

• Journal of the Korean Society for Aviation and Aeronautics
• /
• v.24 no.1
• /
• pp.47-54
• /
• 2016

Global aviation is projected to grow in demand by an annual average of 4.1% between 2014 and 2034. It can be said that environmental impact from aviation will therefore be expected to increase on a similar scale. As regards civil aviation emissions, the sector contributes between 2~3% to International aviation GHG emissions. In the European Union(EU), aviation emissions account for about 3% of the EU's total green house gas emissions, of which a majority are said to come from international flights. In terms of traffic volume in 2013, Korea's international aviation industry 11th with regard to passengers and 3rd with regard to cargo, attaining the overall rank of 5th in the world. GHG emissions has been increasing steadily over the last 4 years, averaging 3.9 percent a year, due to the growth of low cost carriers and the increased demand for air transportations. As for aviation in Korea, there are a number of means intended to attain the Government's emission control objective in an efficient manner, such as AVA (Agreement of Voluntary Activity), TMS (Target Management System) and ETS (Emission Trading Scheme). In addition, the Government intends to better adapt to ICAO's Global MBM(Market-based Measures) that will come into performance on Year 2020. In the study, we focused on GHG mitigation measures that is fulfilling the AVA, TMS, ETS in the Government and suggest the effective measures to reduction the aviation GHG emissions.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.42 no.4
• /
• pp.61-68
• /
• 2019

Currently many companies are interested in reduction of the carbon emissions associated with their supply chain activities such as transportation and operations. Operational decisions, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Cap-and-trade regulation, sometimes called emissions trading, is a market-based tool to limit greenhouse gas emissions. Under cap-and-trade regulation, emission credits are allocated to the firms and the firms trades emissions under cap-and-trade schemes. In this paper, we propose a single-manufacturer single-buyer two-echelon supply chain problem under the cap-and-trade mechanism incorporating the carbon emissions caused by transportation and warehousing activities where a single manufacturer produces a family of items in order to deliver a family of items to a single buyer at a fixed interval of time for effective implementation of Just-In-Time (JIT) Purchasing. An integrated multi-product lot-splitting model of facilitating multiple shipments in small lots between buyer and manufacturer is developed in a JIT Purchasing environment. Also, an iterative heuristic algorithm is developed to derive the common order interval, the number of intervals for each product and the number of shipments between the buyer and the manufacturer during the common interval. A numerical example is given to illustrate the savings in reduction of total cost and carbon emissions by the inventory model incorporating cap-and-trade mechanism compared to the classical inventory model. The proposed inventory model could be useful for the practical solution of two-echelon supply chain inventory problem under cap-and-trade mechanism.