• Economic and Environmental Geology
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• v.42 no.2
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• pp.133-141
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• 2009

For economic impact analysis on a R&D project of high-yield groundwater development in Jeju conducted by KIGAM from 2004 to 2007, benefit/cost ratio(BCR), net present value(NPV), and internal rate of return(IRR) were calculated by contingent valuation method(CVM), production function analysis, domestic water market analysis and technology factor analysis. Measurable direct impact parameters among the major outputs of this R&D project consisted the estimation 4 high-yield and high mineral groundwater reserve in Jeju. Annual use of the reserve by piped water and bottled water was estimated as 12.23 million ton and its monetary value was calculated as 293.4 million dollar in 2006 year value applied of 5.5% discount rate. Economic impact of this R&D project in NPV of year 2006, with applying a discount rate of 5.5%, was identified and estimated as 13.66 million dollar in NPV, 4.05 points in BCR, and 22.74% in IRR, respectively. Additional early launch benefit was 5.58 million dollar. Even increased of the 1% discount rate, NPV of this R&D project was also positive as 12.18 million dollar and BCR was 3.71.

• International Journal of Highway Engineering
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• v.16 no.1
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• pp.75-89
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• 2014

PURPOSES : This study evaluates the economic value of national highway construction projects using Real Option Pricing Models. METHODS : We identified the option premium for uncertainties associated with flexibilities according to the future's change in national highway construction projects. In order to evaluate value of future's underlying asset, we calculated the volatility of the unit price per year for benefit estimation such as VOTS, VOCS, VICS, VOPCS and VONCS that the "Transportation Facility Investment Evaluation Guidelines" presented. RESULTS : We evaluated the option premium of underlying asset through a case study of the actual national highway construction projects using ROPM. And in order to predict the changes in the option value of the future's underlying asset, we evaluated the changes of option premium for future's uncertainties by the defer of the start of construction work, the contract of project scale, and the abandon of project during pre-land compensation stages that were occurred frequently in the highway construction projects. Finally we analyzed the sensitivity of the underlying asset using volatility, risk free rate and expiration date of option. CONCLUSIONS : We concluded that a highway construction project has economic value even though static NPV had a negative(-) value because of the sum of the existing static NPV and the option premium for the future's uncertainties associated with flexibilities.

• Korean Chemical Engineering Research
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• v.52 no.5
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• pp.564-573
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• 2014

Economic optimization of cumene manufacturing process to produce cumene from benzene and propylene was studied. The chosen objective function was the operational profit per year that subtracted capital cost, utility cost, and reactants cost from product revenue and other benefit. The number of design variables of the optimization are 6. Matlab connected to and controlled Unisim Design to calculate operational profit with the given design variables. As the first step of the optimization, design variable points was sampled and operational profit was calculated by using Unisim Design. By using the sampled data, the estimation model to calculate the operational profit was constructed, and the optimization was performed on the estimation model. This study compared second order polynomial and support vector regression as the estimation method. As the sampling method, central composite design was compared with Hammersley sequence sampling. The optimization results showed that support vector regression and Hammersley sequence sampling were superior than second order polynomial and central composite design, respectively. The optimized operational profit was 17.96 MM$ per year, which was 12% higher than 16.04 MM$ of base case.

• Journal of Korea Technology Innovation Society
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• v.5 no.2
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• pp.245-256
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• 2002

Measurement standards, as being widely recognized, is necessary for national economic development and advanced industrialization. Also measurement standards give reliability and fair trade to the producers and consumers. Macro-effect of measurement standards using estimation of cost function has four effects: 1) value-added causing effect, 2) effect of employment, 3) reduction effect transaction cost, 4) reduction effect defect rates. In this study, to investigate the impacts between specific and the other industries, we used I-O Table of Korea Bank. The relation between the value-added produced by original production factors and final use is determined through production level, and the relation can be investigated with production causing coefficient matrix. In this study, it was showed that the measurement standards investments including measurement only man power of industries were increased from 1995 rapidly. The establishment and maintenance of measurement standards contributes to reduce the defect rate of products in production process and improve the confidence of the product quality. The results from this study show that measurement technology contributes to improve quality, decrease defect rate, improve production process, develope new products, reduce prime cost and increase the consumer's confidence on the firms. Since these results indicate that measurement standards are very important in the point of their vast contribution, we hope our findings can contribute to encourage measurement activities in industries.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.367-374
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• 2013

Underground infrastructure systems provide essential public services and goods through buried structures including water and sewer, gas and petroleum, power and communication pipelines. The majority of existing underground infrastructure systems was installed in green field areas prior to development of complex urban built environments. Currently, there is a global trend to escalate major demand for underground infrastructure system renewal and new installation while minimizing disruption and maintaining functions of existing superstructures. Therefore, Engineers and utility owners are rigorously seeking technologies that minimize environmental, social, and economic impact during the renewal and installation process. Trenchless technologies have proven to be socially less disruptive, more environmentally friendly, energy conservative and economically viable alternative methods. All of those benefits are adequate to enhance overall sustainability. This paper describes effective sustainable solutions using trenchless technologies. Sustainability is assessed by a comparison between conventional open cut and trenchless technology methods. Sustainability analysis is based on a broad perspective combining the three main aspects of sustainability: economic; environmental; and social. Economic includes construction cost, benefit, and social cost analysis. Environmental includes emission estimation and environmental quality impact study. Social includes various social impacts on an urban area. This paper summarizes sustainable trenchless technology solutions and presents a sustainable construction method selection process in a proposed framework to be used in urban underground infrastructure capital improvement projects.

• Journal of Environmental Policy
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• v.8 no.3
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• pp.81-113
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• 2009

This study conducted a regulatory impact analysis regarding the introduction of the Korean version of REACH(Registration, Evaluation and Authorization of Chemicals). The direct cost of the Korean REACH is estimated at a total of 101 billion Korean won over the 11 year period. The cost includes pre-registration, testing, registration, Chemical Safety Assessment(CSA) and Chemical Safety Report(CSR), evaluation, and the authorization costs of 15,223 chemical substances produced and imported more than 1 ton per year in Korea in 2006. With regard to the benefit, the only public health benefit is included in the estimation. Based on the available foreign and domestic data, this study estimated that the economic values of public health benefits are in the range of 33.2~138.6 billion Korean won if only the savings of the National Health Expenditures are considered and it reaches 203.9~1,640.3 billion Korean won if the willingness to pay(WTP) for disease prevention is included. This study proved that the Korean REACH passed the cost/benefit criteria. The benefit-cost ratio of the Korean REACH, however, is estimated to be lower than its EU counterpart. Thus it is suggested that a rigorous study to reduce the costs to industry be required before the Korean government introduces the Korean REACH.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.30 no.5D
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• pp.461-465
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• 2010

The objective of this study is to calculate road user costs that caused by the expansion work of metropolitan arterial highway and to analyze the costs that affect economic feasibility evaluation. "Taerung~Guri IC" section of Bukbu Expressway was selected as a case study. As a result, it shows that these costs could be a factor for determining economic feasibility for some projects. However, decreased capacity and free-flow speed are seriously different as period, type, length and traffic volume of work zones. These factors that decrease traffic capacity and free-flow speed should be deeply researched in the future.

• KDI Journal of Economic Policy
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• v.36 no.1
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• pp.43-80
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• 2014

This study suggests a model for calculating total benefit rigorously to use the contingent valuation method (CVM) in cost-benefit analysis (CBA). Estimating households' willingness to pay through survey method, the study attempts to demonstrate if a respondent's income and the distance between a respondent's residence and the location of a target facility affect her willingness to pay. The estimation results from a structural model show that income and distance-decay effects exist and that the calculated total benefit varies largely when these effects are ignored. The study emphasizes the effects of income and distance-decay on the total benefit must be carefully considered in using CVM for CBA. Even though the total project cost is precisely estimated, the benefit/cost (B/C) ratio may differ largely when the total benefit is not correctly calculated. Also, an ad hoc model generates significantly different estimates from the utility difference model this study adopted. The difference in estimates suggests that the total benefit has to be estimated by a structural model. Finally, simulations are performed to check the validity of the model as well as to predict consequences when income and distance-decay effects are not properly treated. The results from simulations reveal it is not desirable to ignore those effects considering the perspectives of balanced regional development.

• Journal of Labour Economics
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• v.31 no.1
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• pp.59-103
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• 2008

The purpose of this study is to estimate the effectiveness of vocational training for the unemployed. The results show that the unemployed who received vocational training commended better performances than those unemployed without any vocational training in respect to the duration of job-seeking period and the success rate of obtaining a job, however no significant change can be found in their wage level after holding a job between the two groups. It can be seen from the cost-benefit analysis, although the trained unemployed show better performance than the untrained unemployed, those that were trained by the Korea Chamber of Commerce and Industry(KCCI) do not show better performance than those that were trained through a private vocational train school since the training cost is much higher in the KCCI.

• Journal of Korea Technology Innovation Society
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• v.16 no.3
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• pp.630-649
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• 2013

Korea Meteorological Administration has promoted the next generation urban and rural smart weather service project. The purpose of this project is to provide the necessary information to urban and rural districts by using the subdivided meteorological information. This study attempts to assess the value of the next generation urban and rural smart weather service project by using contingent valuation method. According to estimating result, annual mean willingness to pay per household for the next generation urban and rural smart weather service project is 2,947 won.