• Journal of Korea Technology Innovation Society
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• v.21 no.4
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• pp.1313-1344
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• 2018

This study aims at investigating the effects of Government R&D subsidies. We analyse the effects of inputs and behavioral additionality on the output additionality. We also measure the moderate effects of the experiences of benefiting from government R&D on the relationship between inputs and behavioral additionality and the output additionality. We conducted a structured questionnaire on the companies who have participated in promotion program of the Korea Innovation Cluster. 126 responses were collected and alnalysed using the OLS technique. Empirical results show that the relationship between input/behavioral additionality (management, follow-up, cognitive capacity) and output additionality had positive effect. The moderating effects of experiences of R&D subsidy on the relationship between input additionality and output additionality and the relationship between cognitive additionality and the output additionality appear to be statistically significant.

• Journal of Technology Innovation
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• v.22 no.4
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• pp.199-233
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• 2014

This paper attempts to investigate how and why the additionality effects occur in the case when a firm receives government subsidy as opposed to counterfactual situation. To demonstrate this, we selected 12 SMEs(small and medium enterprises) firms in Daejeon area and have conducted multiple case studies. In order to analyse the multiple cases of firms, we classified firms innovative activities into three stages which are composed of input, behaviour and output stages and related various factors. Furthermore, we investigated the differences according to types of firms and stages of firm growth. Empirical results show that various input, behaviour and output additionality effects exist when firms receive public subsidies. Compared to companies in the growth and mature stages, startup phase companies depend on government subsidy extensively and they use public subsidies strategically to develop new product and to change their strategic direction. The attitude of firms to use government subsidies is different according to their types and stage of growth as well.

• New & Renewable Energy
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• v.2 no.1 s.5
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• pp.66-71
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• 2006

CDM(Clean Development Mechanism) is one of three Kyoto mechanisms. As a non-annex I party of UNFCCC, Korea can host CDM projects. Currently eight CDM projects are hosted in Korea under Kyoto protocol. Six of these CDM projects are related to renewable energy power generation. Renewable energy power plants assumes zero GHGs emission and has great potential to become COM projects which is very environmental friendly energy. Gangwon wind park CDM project is the first renewable CDM project in Korea. In this research, emission factors and additionality proving process are studied, which are important procedures of doing CDM project.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.272-275
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• 2009

Carbon finance is the investment in Greenhouse Gas (GHG) emission reduction projects in developing countries and countries with economies in transition within the framework of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI) and with creation of financial instruments, i.e., carbon credits, which are tradable in carbon market. The additional revenue generated from carbon credits will increase the bankability of projects by reducing the risks of commercial lending or grant finance. Meantime, it has also demonstrated numerous opportunities for collaborating across sectors, and has served as a catalyst in bringing climate issues to bear in projects relating to rural electrification, renewable energy, energy efficiency, urban infrastructure, waste management, pollution abatement, forestry, and water resource management. Establishing additionality is essential for successful CDM project development. One of the key steps is the investment analysis. As guided by UNFCCC, financial indicators such as IRR, NPV, DSCR etc are most commonly used in both Option II & Option III. However, economic indicator such as Economic Internal Rate of Return(EIRR) are often overlooked in Option III even it might be more suitable for the project. This could be due to the difficulties in economic analysis. Although Asian Development Bank(ADB) has given guidelines in evaluating EIRR, there are still large amount of works have to be carried out in estimating the economic, financial, social and environmental benefits in the host country. This paper will present a case study of a CDM development of a 18 MW hydro power plant with carbon finance option in central Vietnam. The estimation of respective factors in EIRR, such as Willingness to Pay(WTP), shadow price etc, will be addressed with the adjustment to Vietnam local provincial factors. The significance of carbon finance to Vietnam renewable energy development will also be addressed.

• Journal of Technology Innovation
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• v.30 no.1
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• pp.57-104
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• 2022

The government has supported the innovation of private firms by intervening the market for various purposes, such as preventing market failure, alleviating information asymmetry, and allocating resources efficiently. Although the government's R&D budget increased rapidly in the 2000s, it is not clear whether the government intervention has made desirable impact on the market. To address this, the current study attempts to explore this issue by doing a systematic literature review on foreign and domestic papers in an integrated way. In total, 168 studies are analyzed using contents analysis approach and various lens, such as policy additionality, policy tools, firm size, unit of analysis, data and method, are adopted for analysis. Overlapping policy target, time lag between government intervention and policy effects, non-linearity of financial supports, interference between different polices, and out-dated R&D tax incentive system are reported as factors hampering the effect of the government intervention. Many policy prescriptions, such as program evaluation indices reflecting behavioral additionality, an introduction of policy mix and evidence-based policy using machine learning, are suggested to improve these hurdles.

• Journal of Environmental Policy
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• v.5 no.2
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• pp.69-93
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• 2006

This paper considers major three steps to arrive at accurate baseline emissions against which actual emission reductions attributable to CDM projects are accounted for. The first step is to select most likely baseline scenario among plausible alternatives. Then, the additionality of the project in question would be assessed by demonstrating that the project is not included in the baseline scenario selected. Finally, baseline emissions are calculated under the baseline scenario. In this paper, these three steps are integrated into a single flow chart in order to help understand the procedures for application of a baseline methodology better. Following the flow chart, a landfill gas-to-electricity project in Korea is analyzed as a case study. In consequence, this paper concludes that landfill gas-to-electricity projects in Korea have great potential for CDM projects, and it could also be concluded that data availability and reliability are a prerequisite for successful application of baseline methodologies for landfill gas projects to Korean specific situations.

• Journal of Korean Society for Atmospheric Environment
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• v.27 no.2
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• pp.209-213
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• 2011

Enforcement Decree of the Framework Act on Low Carbon, Green Growth for achieving the country's GHG emission reduction goal of 30% was in effect. The remarkable content of the Act is the managements of targets for GHG reduction. So, the entities that have reduced voluntarily have much interest in the recognition of 'early action'. The recognition of early action is necessary to induce the fair competence of business entities and promote the voluntary GHG reduction. The definite and concrete guidance should be prepared. The important principles for this are the environmental integrity and the additionality. Based on this, the early action activities must be restricted to the voluntary, real, permanent, quantifiable, verifiable reduction. In the early action recognition, its credit should be allocated additionally set aside from the GHG target allocation in the national total allowance. Through this, the reward for the early reduction should be realized on market mechanism. The effective period to award the early action should be addressed. This can be the period after the enactment of framework on GHG reduction in effect and before the beginning year of GHG target control. It should be set with flexibility through the collection and consultation of the sector's opinions. The appropriate allowance reserve of early action was estimated as approximately 1~1.5% by using the data from the 'Pilot GHG Emission Trading Program' operated by Ministry of Environment. Also, the concrete and detail guidance to construct the necessary infra which is used to register the related information of early action activities should be prepared.

• New & Renewable Energy
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• v.18 no.3
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• pp.43-59
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• 2022

The green premium is the most important feature of Korea's RE100 system. Green premium has three characteristics. The first, the cost of implementation is lower than that of other means of implementation. The second, it is linked with the RPS system to keep the means of implementing the green premium low. Third, the funds raised by the green premium are used to supply renewable energy to compensate for the additionality that the green premium does not have. When the entire industrial sector's electricity consumption is converted to renewable energy, the implementation cost of the green premium is estimated to be 3,377.4 billion won, and the REC purchase is estimated to incur the implementation cost of 6,576.4 billion won, which is 3.5 trillion more than the green premium. It was analyzed that an additional implementation cost of KRW 100 million would occur. In addition, in the case of solar PPA, it was analyzed that additional implementation costs of KRW 13,375.7 billion to KRW 16,162.3 billion were incurred. It was estimated that the renewable energy that could be supplied to the green premium would at least be sufficient for companies exporting to the US and EU. In addition, it was analyzed that when the fund created as a green premium is used for renewable energy supply, about 30.7% of the renewable energy supply through PPA can be supplied. However, as ESG is emphasized, green premium can be criticized by green washing because there is no additionality. There is also a limit to responding to the EU's CBAM. Therefore, companies can use the green premium depending on the situation, but it is more advantageous to use PPA, etc. The government needs to sufficiently maintain the supply of renewable energy using the fund to maintain the green premium.

• 한국신재생에너지학회:학술대회논문집
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• 2006.06a
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• pp.298-303
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• 2006

CDM(Clean Development Mechanism) is one of three Kyoto mechanisms. As a non-annex I party of UNFCCC, Korea can host CDM projects. Currently eight CDM projects are hosted in Korea under Kyoto protocol. Six of these CDM projects are related to renewable energy power generation. Renewable energy power plants assumes zero GHGs emission and has great potential to become CDM projects which is very environmental friendly energy Gangwon wind park CDM project is the first renewable CDM project in Korea. In this research, emission factors and additionality proving process are studied, which are important procedures of doing CDM project.

• The Journal of Small Business Innovation
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• v.19 no.3
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• pp.1-16
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• 2016

Korean government had used public 'credit guarantee schemes' (CGS) as a counter-cyclical measure. However, it is still controversial about the effectiveness of policy financing on the SMEs. Criticism on policy financing involves the argument that supporting enterprises hampers competition and innovation of SMEs by increasing their dependence on the government and delays the exit of marginal firms. In this paper, we investigate how to effectively build up the rationale of running public CGSs. At the same time, we propose the ways to coexist of public credit guarantee and market-based private finance system for SMEs. First, CGS, as a counter-cyclical function, must coexist with the private financial system by compensating the market failure caused by pro-cyclical behavior of the private financial market. Second, CGS has the comparative advantages, compared to both the interest rate policy of the central bank and fiscal policy of the government. The credit guarantee is the symptomatic treatment that could revitalize the economy shortly by providing liquidity. Also, knowing that CGS is provided based on the leverage ratio defined by outstanding guarantee divided by capital fund, public 'credit guarantee' (CG) has an advantage that is free from the risk of government deficit. Third, the reason for existence of the CGS should be founded in supporting services for SMEs, available only in a public sector that is difficult to expect from private banks. In this regard, it is desirable to strengthen the publicness of credit guarantee over the support for start-ups, growing companies, the improvement of productivity, increase of exports, a long-term investment in facilities, the employment-creating businesses, and innovative enterprises.