• Journal of Climate Change Research
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• v.9 no.3
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• pp.273-281
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• 2018

The purpose of this study is to consider the effectiveness of continuous $CO_2$ emission monitoring in waste incinerator. To prevent global warming, many countries are trying to reduce $CO_2$, the main greenhouse gas. Currently, Korea is implementing an emission trading scheme to reduce $CO_2$, and waste incinerators are included in this scheme as major $CO_2$ sources. However, when using waste incinerators, $CO_2$ is discharged during incineration of various types of wastes, therefore it is very difficult to calculate the amount of emissions according to IPCC guidelines. In addition, the estimation of $CO_2$ emissions by calculation is known to lack of accuracy comparing with actual emissions. Currently, Korea is operating CleanSYS, which enables continuous measurement of gases emitted into the atmosphere. Therefore, it is possible to estimate the $CO_2$ emissions of waste incineration facilities. The IPCC, which published $CO_2$ emission calculation guidelines, recognizes that direct measurement of emission is a more advanced method in cases of various $CO_2$ emission sources such as a waste incineration facility. Also, Korean emission trading scheme guidelines allow estimation of $CO_2$ emissions by continuous measurement at waste incineration facilities. Therefore, this study considers the effectiveness of a direct measurement method by comparing the results of CleanSYS with the calculation method suggested by the IPCC guidelines.

• Journal of Climate Change Research
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• v.7 no.1
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• pp.41-48
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• 2016

Korea has introduced Korea Emissions Trading Scheme (Korea ETS) since 2015. However, not many companies voluntarily participate in the emissions trading. The goal of this paper is to provide the way to improve the Korea ETS. This study compares the Korea ETS with EU Emissions Trading System, which has been practiced for a decade, and suggests three strategies to activate the Korea Emissions Trading Scheme. The first thing is to encourage more companies to participate in the emissions trading since the number of companies in the emissions trading in Korea is quite limited compared with that of EU. The second thing is to activate the trading of Korean Credit Unit in order to stimulate various emission reduction mechanisms. Currently, the most of the trading in the emissions market is through the Korean Allowance Unit. The third thing is to establish concrete measures to continuously improve the Korea ETS. A comprehensive evaluation of the Korea ETS is needed along with the ongoing convergence with the associated comments. The improvement of Korea ETS would be one of the most efficient ways to compete the climate change, and would also play a role to raise the status of Korea.

• Environmental and Resource Economics Review
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• v.32 no.3
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• pp.149-166
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• 2023

The emissions trading system, introduced to reduce greenhouse gas emissions, experienced a sharp increase in emission allowance prices during the second plan period (2018-2020), which led to an increase in the demand for smooth supply and demand of emission allowances, while suppliers anticipating a shortage of emission allowances in the future did not participate in trading. Therefore, the authority temporarily revised the guidelines to ensure that the amount of allowances carried forward is proportional to the trading volume as a market stabilization measure. Through an optimization process using a dynamic nonlinear mathematical model, this paper analyzes the impact of the government's intervention on the carryover policy on GHG emission reductions and emission allowance market prices. According to the simulation analysis results, banking regulations could cause a decline in prices during the regulation period, even though the initial policy was predicted to be adopted.

• Journal of Environmental Policy
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• v.8 no.4
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• pp.95-124
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• 2009

This study aims to introduce greenhouse gas emission trading in Korea as a highly cost-effective mechanism for controlling emissions. The Basic Act on Low-Carbon Green Growth will cover methods of emissions allocation, national inventory, and trading systems (i.e. emissions trading platforms, national registry,and clearing and settlement platforms). The Korean emission scheme will be based on the Korean Climate Change Act proposed by the National Assembly and Government with a cap-and-trade scheme. The national allowances will be allocated by the hybrid system. To establish the national inventory, TRADEMARKS (Telemetering System) and emissions factors are effective for greenhouse gas emissions measurement. It will likewise be effective for the national registry to be implemented via a Korean Integrated Registry, the emissions trading platform via the KRX (Korean Exchange), and the clearing and settlement platform via the KSD (Korean Securities Depository). In other words, the KRX will manage product development and marketing for Korean Carbon Financial Instruments (including commodities, futures, and options contracts) listed and admitted to trading on the KRX. All emissions trades will be standardized and cleared by the KSD.

• Journal of Climate Change Research
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• v.8 no.3
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• pp.221-230
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• 2017

There are two main policies to meet the national goal of reducing Greenhouse Gases (GHGs) emissions in Korea towards Paris Agreement. From 2012 to 2014, Target Management System (TMS) was operated and the Emissions Trading Scheme (ETS) has been established since 2015. To compare the impact of TMS and ETS on reducing GHGs, we collected annual GHGs emission reports submitted by individual business entities, and normalized them using a z-variant normalized function. In order to evaluate the impact of those policies, we calculated the amount of GHGs emissions of 73 business entities from 15 business sectors. Those entities emitted $508million\;CO_2eq$, which is 74% of total national GHGs emissions in 2014. The main results of analysis indicate that accumulated GHGs emissions during the period 2012 to 2014 affected by TMS was higher than the national goal of GHGs emission reduction, and only the GHGs emissions in 2014 were in the range of allowed GHGs emissions, set by the Government. In 2015, when ETS initiated, total GHGs emission trading was $4.84million\;tCO_2eq$, which is only 0.9% of total allowance in 2015. However, more than 50% of business entities, who got the allowance of GHGs emission given by the Government, met the goal of GHGs emissions. Particularly, 27 of 73 business entities reduced GHGs more under the ETS rather than the TMS. Even though we analyzed only 4 years' data to demonstrate the impact of TMS and ETS, it is expected to commit the national goal of GHGs reduction target by TMS and ETS.

• Environmental and Resource Economics Review
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• v.10 no.1
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• pp.65-93
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• 2001

This study provides allocation methods and transaction instances of introducing pilot projects of $SO_2$ emission trading that recently rises as an scheme for effective emission regulation to internalizing environmental externalities. The emissions caps that is the total endowment of $SO_2$ emission permits are calculated in each emission plant by considering methods for distributing those permits-by giving them away or by selling them at auction. The method adopted in this study has several defects in application of the reality. However, this study may have contributions to cognize the importance of, allowance trading among the participants and to firstly design the allocations of emission permits for each plant using real emission data.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.20 no.2
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• pp.32-38
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• 2012

The United Nations (UN) has tried to make international agreement to restrict artificial greenhouse gas emissions and the UN has concluded the UN Framework Convention Climate Change (UNFCCC) and the Kyoto protocol. Moreover, in 2012, the European Union announced that they will enforce the Directive 2008/101/EC. Therefore, after 2012, aircraft carriers that depart or arrive from EU will follow that regulation. For these reasons, Korea should prepare systematic and effective policy to reduce greenhouse gas emission from aviation activities. The purpose of this study is to find out effective measures to reduce greenhouse gas emission from aviation activities through research by countries all over the world. Here are the 4 measures to reduce greenhouse gas emission from Aviation activities that were found through research UK and Japan's policies. First, Korea should implement aggressive incentive policies. Providing proper incentive can attract voluntary participation of aircraft carriers to reduce greenhouse gas emission. Second, the government should adopt environmental tax on use of fossil fuels. Third, Korea should adopt the greenhouse gas Emissions Trading Scheme (ETS). Lastly, the Korea government should pull in with the international community to establish world-wide environmental policies.

• Proceedings of the Korea Air Pollution Research Association Conference
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• 2008.10a
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• pp.82-84
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• 2008

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.58
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• pp.329-351
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• 2013

Since the Kyoto Protocol was released in 2005, there has been a number of mechanisms about funding and how to allocate the burdens. The UNFCCC(United Nations Framework Convention on Climate Change)have discussed establishing an international fund to support the reduction of a greenhouse gas. As the availability of adaption finance for developing countries increase, it's needed for a way of prioritizing countries. This article analyzes the carbon reduction system that includes a emission trading scheme, a carbon tax and examines GCF(Green Climate Fund)'s role and needs. A solution to finance Green Climate Fund is more preferred a harmonized carbon tax that across all nations with carbon tax. Especially the role of industrialized countries is important that based on their historical responsibility for fossil fuel emission. That is, they should get more shares of the global costs than developing countries.

• Environmental and Resource Economics Review
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• v.21 no.1
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• pp.27-67
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• 2012

This paper analyzed the effect of transaction costs on the prices and trading volumes at the initial stage of emission markets and also examined how the size of the effect differs depending on the characteristics of the transactions. We built trading protocols modeling a recursive process to search the trading partner and make transactions with several behavioral assumptions considering the situations of early markets. The simulations results show that adding transaction costs resulted in reduction of trading volumes. Furthermore, the speed of reduction in trading volume to the increase of transaction costs is higher when there is scale economy. With a certain level of scale economy, the trading volumes abruptly fall down to almost zero as the transaction cost gets over a certain level. This suggests the possibility of a failed market. Since the scale economy is thought to be significant in the early stage of emission trading market, it is desirable to design a trading system that maximizes trading volumes and minimizes unit transaction costs at the outset. One of the alternatives to meet these conditions is to establish a centralized exchange and take measures to increase trading volumes.