• Journal of the Korean Data and Information Science Society
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• v.22 no.3
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• pp.401-412
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• 2011

This study uses a vector error correction model to analyze the daily time series data of the spot price of EUA (European Union Allowance). As endogenous variables, five variables are considered for the analysis, including prices of crude oil, natural gas, electricity and coal in addition to carbon price. Data period is Phase 2 period (April 21, 2008 to March 31, 2010) to avoid Phase 1 period (2005-2007) where the EUA prices were distorted. Unit-root and cointegration test results reveal that all variables have a unit root and cointegration vectors exist, so a vector error correction model is adopted instead of a vector autoregressive model.

• 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 Environmental Health Sciences
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• v.34 no.4
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• pp.316-326
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• 2008

The Earth's temperature has risen $0.76^{\circ}C$ (degree) during last 100 years which Implies a sudden rise, compare with the 4oC (degrees) rise through out the past 20,000 years. If the volume of GHG (Greenhouse Gas) emission continues at the current level, the average temperature of the Earth will rise by $1^{\circ}C$ (degree) by 2030 with the further implication that the temperature of Earth will rise by $2{\sim}5^{\circ}C$ (degrees) every 100 years. Therefore, as we are aware that the temperature of the glacial epoch was $8{\sim}9^{\circ}C$ (degrees) lower than the present time, we can easily predict that the above temperature rises can be potentially disastrous for human life. Every country in the world recognizes theseriousness of the current climate change and adopted a convention on climate change in June 1992 in Rio. The COP1 was held in March 1995 in Berlin and the COP3 in Dec. 1997 in Kyotowhere the target (2008-2012) was determined and the advanced nations' reduction target (5.2%, average)was also agreed at this conference. Korea participated in the GHG reduction plan which required the world's nations to ratify the Kyoto Protocol. Ratification of the Kyotoprotocol and the followup requirement to introduce an international emissions trading scheme will require severe reductions in GHGs and considerable economic consequences. USA are still refusing to fully ratify the treaty as the emission reductions could severely damage the economies of these countries. In order to estimate the exact $CO_2$ emission, this study statistically analyzed $CO_2$ emission of each country based on the following variables : level of economic power and scientific development, the industrial system, productivity and energy efficiency.

• Environmental and Resource Economics Review
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• v.20 no.4
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• pp.689-733
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• 2011

This study evaluates a novel scheme to trade sulfur dioxide emission permits subject to non-uniform rates. These rates are based on generators' marginal costs of compliance with environmental policy in a hypothesized least social-cost solution. This scheme is compared against the existing trading program used by the U.S. Environmental Protection Agency, featuring permits tradable one for one. Both policies are modeled to yield identical aggregate emissions. A numerical partial-equilibrium model of the U.S. energy industry is used to infer sulfur dioxide concentrations and health damages, as well as producer and consumer surplus, under the two policies. Regional pollution levels are found to vary across the two policies significantly. The system of exchange rates is estimated to outperform the uniform-trading scheme by $2.2 billion in industry profits and $2.1 billion in health damages, but to reduce consumer surplus by $6.7 billion. Paradoxically, exchange rates are thus estimated to lower total welfare by $2.5 billion. This is due to conceptual mechanism-design problems, as well as empirical issues.

• Journal of Climate Change Research
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• v.9 no.4
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• pp.453-460
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• 2018

The purpose of this study is to analyze the potential quantity of Korean Offset Credits (KOC) resulting from Certified Emission Reductions (CER) in 98 domestic Clean Development Mechanism (CDM) projects that were registered with the United Nations Framework Convention on Climate Change (UNFCCC) as of the end of 2016. Our results show that the total amount of potential KOC is 62,774 kt CO2eq. The potential KOC is only 23.4% of the total CER Issuance. During the first phase, this will be 3.2% of the allocated volume. This is because many projects are related to Renewable Portfolio Standard (RPS), HFC-23, and adipic acid N2O. There is a strong bias in some sectors and projects which could act as market distortion factors. Therefore, it is necessary to expand the target CDM project and activate non CDM offset projects. RPS projects bring fundamental changes to the energy sector, and it is worth reconsidering their acceptability. A wide variety of policy incentives are needed to address strong biases toward certain sectors and projects. The offset scheme has the advantage of allowing entities to reduce their GHG emissions cost effectively through a market mechanism as well as enabling more entities to participate in GHG reduction efforts both directly and indirectly. In contrast, having an inadequate offset scheme range and size might decrease the effort on GHG reduction or concentrate available resources on specific projects. As such, it is of paramount importance to design and operate the offset scheme in such a way that it reflects the situation of the country.

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

• Transactions of the Korean Society of Mechanical Engineers B
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• v.40 no.6
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• pp.409-415
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• 2016

In this study, we test the effects of the surface roughness on the hydro efficiency of double-suction centrifugal pumps ($Q=70.7m^3/min$, H = 87 m). The original surface of the impeller and inner casing were coated, resulting in surface-roughness reductions ranging from $100{\sim}110{\mu}m$ to $0{\sim}0.08{\mu}m$. We conducted experimental studies to measure the efficiency of the pumps and operating-pump electro energy variations with different surface roughness values. The experimental results showed that the efficiency of the pumps increased by about 0.8~1.79% and the electric energy of the operating pump was reduced by around 4.38 ~ 6.08%. These results indicate that the performance of the pumps depend largely on the surface roughness of the impeller and inner casing, and by reducing the surface roughness, we can improve the efficiency of the pump and reduce costs by reducing the electric energy consumption.

• 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.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.4
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• pp.512-521
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• 2018

Islands that is far away from onshore have used internal-combustion engine driving alternators to secure electric power. However, with Paris convention on climate change, there is a growing interest in eco-friendly energy independent island that replaces microgrid(MG) consisting of photovoltaic, wind power, and energy storage system with alternators for internal combustion engines. And also, national emission trading has been implemented, and the price of certified emission reduction(CER) has a influence on system marginal price(SMP). Because, the low cost generation source decides SMP when CER price is low, while the more expensive generation source decides SMP when CER price is high. Therefore, the increasing of CER price has a strong influence on the annualized return of MG independent power producer. Moreover, the fixed RPS price is implemented from 2017, which the increasing of CER price under the fixed RPS price or the variable RPS price affects annualized return differently. In this paper, the annualized return according to CER price is analyzed for large, middle, and small scaled islands, the effect of CER price on the annualized return was confirmed.

• Journal of Energy Engineering
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• v.11 no.1
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• pp.59-66
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• 2002

The vertically integrated power industry was divided into six generation companies and one market operator, where electricity trading was launched at power exchange. In this environment, the profits of each generation companies are guaranteed according to utilizing strategies of their own generation equipments. This paper presents on generator maintenance scheduling and efficient bidding strategies for generation equipments through the calculation of the contract and the application of each generator cost function based on the past demand forecasting error and market operating data.