• Environmental and Resource Economics Review
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• v.16 no.1
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• pp.27-63
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• 2007

Using the CGE model, this paper investigates economic impacts of a shortage in crude oil resulting from voluntary export restraints, OPEC's agreement of a cut in oil production, and/or a storing on speculation. Unlike most previous studies considering oil price as the unpredictable variable, this study constructs the model to determine the oil price endogenously under the condition of an insufficient supply of crude oil. According to IEA's extraordinary steps for a shortage of crude oil, we investigate an economic impact of 7~12% shortage below the level of business as usual. The results show that oil price soars by 17.3~33.5%, the rate of economic growth falls by 0.52~0.96%p, and the consumer price index(CPI) rises by 0.8~1.51%p. These results imply that increasing in 1%p of oil price results in decreasing in 0.03%p of economic growth and increasing in 0.045%p of consumer price index. The production of electricity declines because of the increase in production cost. A shortage of crude oil has an effect on sources of electricity. Most reduction in electricity generation occurs from the reduction in the thermal power generation which is highly dependent on crude oil. The shortage of crude oil causes demand for petroleum to significantly decline but demand for coal and heat to increase because of the substitution effect with petroleum. Demand for gas rise in the first year but falls from the second year.

• Clean Technology
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• v.18 no.1
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• pp.69-75
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• 2012

In this study, we executed an environmental impact assessment about recycling of ITO (Indium Tin Oxide), used for touch panel. ITO is mainly used to make transparent conductive coatings for touch and flat screen LCD (Liquid Crystal Display), ELD (Emitting Light Device), PDP (Plasma Display Panel). This demand is increasing little by little. but form current status, ITO is discarded than recycling. It is important to recycling ITO for national strategies about resource conservation, and reduce environmental burden. Also Landfill or incineration of ITO cloud be harmful to the human health in the long-term. Material Life Cycle Assessment method (MLCA) was conducted for comparison landfill and recycling of ITO. MLCA would provide more information for environmental issues and potential environmental impacts of ITO. The study includes two scenarios, the basic scenario is recycling of ITO (10, 20, 30%) and the other scenario is landfill of ITO. In addition, amount of carbon dioxide and energy were calculated.

• 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.2
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• pp.299-323
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• 2021

This study investigated the impact of information and communication technology (ICT), trade openness, financial development, and economic growth on CO₂ emissions in Korea from 1990 to 2016. The cointegration relationship of the variables was confirmed by an autoregressive distributed lag (ARDL) bounds test. In the long-run, economic growth was statistically significant factor in the increase in CO₂ emissions, while other factors, as well as ICT, did not significant factors in the changes in CO₂ emissions. In the long-run, a link between economic growth and CO₂ emissions has been confirmed, but other factors, including ICT, have not been able to confirm the link between CO₂ emissions in the long-run. Meanwhile, in the short-run, economic growth and ICT increased CO₂ emissions, and financial development led to a decrease in CO₂ emissions. Trade openness did not have a significant effect on CO₂ emissions in the short-run as in the long-run. In particular, ICT did not contribute to the reduction of CO₂ emissions in the short-run as well as the long-run. In order to induce CO₂ mitigation through ICT, the development and deployment of technology that efficiently save energy by using ICT should be further promoted.

• Environmental and Resource Economics Review
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• v.17 no.3
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• pp.167-199
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• 2008

There are many successful cases in power interconnection among European and South American countries. However, that is not the case in Northeast Asian countries. Even though there will be a considerable benefit in power interconnection in Northeast Asian countries, there will be some difficulties due to various interest relationship and constraints among countries in Northeast Asia. GTMax(Generation and Transmission Maximization) Program is a very useful tool to analyze competitive electricity market and power interconnection developed by Argonne National Laboratory under the Department of Energy in the USA. This study tried to verify applicability and usefulness by GTMax model to domestic electric power system and power transfer from Russia Far East by power interconnection. When the power by importing from Russia is 2,000MW(around 2% of domestic installed capacity in 2017), there is no impact on domestic electricity market because of small power transfer. The power by importing should be large enough for achieving greater cost reduction by power interconnection. Besides, it would be better to supply power to Kyung-In region directly in reducing overall cost when the power by importing from Russia are sold at low price. In the case of interconnecting Young-Dong region, if it is not possible to upgrade transmission line with power transfer capabilities between Young-Dong and Kyung-In region, then the power by importing from Russia can replace the power produced in Jung-Bu region and the relative benefit of importing power can be reduced.

• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.643-665
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• 2014

We study the optimal policy of the contracual arrangement in raising the debt-to-equity ratio for oil, gas and mining project finance deals. We investigate the impact of the optimal contractual relationship between counterparties on the soundness of projects, differing in output price volatility and country risk. Key findings are: first, the existence of EPC sponsors and off-takers generally raises the debt-to-equity ratio. In particular, EPC sponsors and off-taking sponsors jointly mitigate the credit risk caused by counntry risk. Seocond, off-taking and EPC contracts jointly help mitigate the credit risk caused by the country risk, rather than the price volatility. Indeed, the contractual structure raises the debt-to-equity ratio.

• Environmental and Resource Economics Review
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• v.27 no.3
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• pp.495-520
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• 2018

Because of structural changes in the international oil market and the economy, it is widely recognized that the impact of oil shocks on the economy has weaken since the mid-1980s. This study tries to examine the validity of the recent perception about the relationship between oils shocks and the economy, estimating the time-varying effects of oil shocks on the Korean economy. The results show that the dynamic effects of oil shocks normalized to a one standard deviation has been relatively constant, in contrast to the recent perception and a number of existing studies. In addition, because the shape of impulse response functions at each point in time spanning from 1984:II to 2017:IV has not been changed significantly, it seems that the propagation mechanism of oil shocks also has not been substantially altered. These findings indicate that even though structural changes of the economy, such as the reduction in the share of oil consumption and the spread of high-efficiency energy technologies, have been rapidly progressed, it is not still enough to offset the negative effects of oil shocks. Rather, it seems that the recent perception about the shrinking effects of oil shocks is mainly due to the assumptions that do not reflect changes in the size of oil shocks. In particular, this problem appears more pronounced in the case of the typical a one standard deviation increase oil shock under homoskedasticity assumption, which is widely adopted in the most VAR analyses. Therefore, in estimating the effects of oil shocks on the economy, it is important to specify the correct model and normalization method, to reflect changes in the size of oil shocks.

• Environmental and Resource Economics Review
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• v.15 no.4
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• pp.591-642
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• 2006

This paper intends to analyze economic impacts of commitment period and initial allocation in emissions trading using computable general equilibrium (CGE) modeling. The fully dynamic CGE model with perfect foresight assumption is employed to illustrate (i) how a model displays economic impact of $CO_2$ regulation upon different commitment periods: one-year budget clearing vs. 5-year commitment period, (ii) how major 8 energy-intensive industries respond to different ways to allocate initial allowances. According to the results of the analysis, it IS found that market players are motivated to bank the permits and tend to sell permits in earlier stage and to buy permits in later stage of commitment period. This implies that banking allows permit trading within a commitment period, which supports the conclusions of Kling and Rubin (1997). Other findings are related to efficiency. That is, emissions trading surpasses command and control, in terms of economic efficiency and longer terms of commitment period converge on lower permit price, In long term, initial allocation based on value-added performs the lowest GDP loss among different initial allocations.

• Environmental and Resource Economics Review
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• v.29 no.1
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• pp.23-45
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• 2020

The rapid economic growth has brought tremendous pressure on the environment and caused severe air pollution in China. This study empirically examines causes of air pollution in China. Panel-corrected standard errors procedure (PCSE) was used to analyze major determinants of increasing or reducing emissions of sulfur dioxide (SO₂) and nitrogen oxides (NO_X) in 30 Chinese provinces. The estimation results show that SO₂ emission is mitigated as per capita regional GDP increases, but the relation between emission of NO_X and per capita regional GDP is found to have an inverse N-shaped curve, which implies that emission of NO_X is ultimately expected to decline with economic growth. As for increasing factors of air pollutants, electricity consumption is a significant common source of SO₂ and NO_X emissions. Moreover, the results show that increment of coal consumption significantly affects emission of SO₂ while increase of natural gas consumption reduce emission of SO₂. On the other side, investment in energy industry, and investment on treatment of waste gases are determinants of mitigating emissions of SO₂, but have no impact on NO_X. Consumption of diesel, truck ratio and number of vehicles increase emission of NO_X. Meanwhile, higher precipitation rate is a common determinant of mitigating emissions of SO₂ and NO_X. Policy implications are suggested in the conclusion.

• Journal of Navigation and Port Research
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• v.46 no.6
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• pp.483-490
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• 2022

Floating LiDAR is a system that provides a new paradigm for wind condition observation, which is essential when creating an offshore wind farm. As it can save time and money, minimize environmental impact, and even reduce backlash from local communities, it is emerging as the industry standard. However, the design and verification of a stable platform is very important, as disturbance factors caused by fluctuations of the buoy affect the reliability of observation data. In Korea, due to the nation's late entry into the technology, a number of foreign equipment manufacturers are dominating the domestic market. The west coast of Korea is a shallow sea environment with a very large tidal difference, so strong currents repeatedly appear depending on the region, and waves of strong energy that differ by season are formed. This paper conducted a study examining buoys suitable for LiDAR operation in the waters of Korea, which have such complex environmental characteristics. In this paper, we will introduce examples of optimized design and verification of ship-type buoys, which were applied first, and derive important concepts that will serve as the basis for the development of various platforms in the future.