• Environmental and Resource Economics Review
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• v.29 no.1
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• pp.91-111
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• 2020

While the renewable energy portfolio standard (RPS) is in place to expand the scale of renewable energy generation, the power producer can obtain the renewable energy credit (REC) and use it as an incentive to operate the facility. RECs secured by solar power generation can be traded through spot market or fixed price contracts, and, in the spot market trading, power producers are exposed to the uncertainty of REC spot price. In this study, real option analysis is conducted to analyze the optimal threshold of REC spot price for the conversion of REC trading method by power producer considering the uncertainty of REC spot price. We calculated the optimal threshold of REC spot price that can convert the trading method of REC from spot market to fixed price contract. In conclusion, the spot market trading is a rational trading method when considering the uncertainty of REC price, but the fixed price bidding is a rational trading method when not considering the uncertainty of REC price.

• Communications for Statistical Applications and Methods
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• v.11 no.2
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• pp.213-225
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• 2004

A fixed-strike lookback option is an option whose payoff is determined by the maximum (or minimum) price of the underlying asset within the option's life. Under the Black-Scholes framework, the time-t price of an equity asset follows a geometric Brownian motion. Applying the method of Esscher transforms, this paper will derive explicit pricing formulas for fixed-strike lookback call and put options, respectively. In addition, this paper will show a relationship (duality property) between the pricing formulas of the call and put options. Finally, this paper will derive explicit pricing formulas for the fixed-strike lookback options when their underlying asset pays dividends continuously at a rate proportional to its price.

• Korean Journal of Construction Engineering and Management
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• v.16 no.2
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• pp.46-53
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• 2015

Electrical construction cost index is composed of the cost of albor and material. The producer price index is used to the cost of material. The Bank of Korea restructured the formation method and the basic period of the producer price index in 2013. Because fixed-weighted method can't faithfully reflect industrial structure changes. The weighted value and price index of fixed-weighted method is fixed on the basicp eriod. Electrical construction cost index is changed from fixed-weighted method to chain-weighted method in september 2014, because of these on the need. But the change of organization in formation method changes the weighted value. So there is the need of analysis about the statistical continuity of electrical construction cost index. This study is focused on the time series analysis between fixed-weighted and chain-weighted electrical construction cost index. We uses unit root test, cointegration test, regression analysis of long and short term equation, fitness for the estimation of static forecast as time series analysis. We verify that chain-weighted electrical construction cost index can be replaced to fixed-weighted construction cost index accounting analyses result. So users of it recognize that chain-weighted electrical construction cost index has statistical continuity.

• KIEE International Transactions on Power Engineering
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• v.5A no.2
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• pp.199-203
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• 2005

This paper proposes the level of price cap in the TWBP(Two- Way Bidding Pool) market in Korea for which the draft of market design has been prepared by KPX. Max - GMCP(Maximum Generation Market Clearing Price) and APC(Administered Price Cap) would be separately applied as individual price caps for a normal period and a Price Capping period in TWBP. The level of price cap is determined for inducing optimal investment in the Korean Electricity Market considering the 'electricity resource baseline plan' published by the Korean government in 2002 for maintaining government-leading resource planning in Korea. In this regard, Max - GMCP is calculated from the equilibrium condition of investment based on reliability standard and fixed cost of the peaking plant. For verifying the propriety of the proposed price cap, this paper compares the proposed value with the estimated VoLL(Value of Lost Load) based on Korea's GDP(Gross Domestic Product).

• Journal of Information Technology Applications and Management
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• v.29 no.2
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• pp.17-25
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• 2022

Although the two types of currencies compete, the possibility of a virtual currency price bubble is diagnosed by assuming an economic model with currencies (won, virtual currency) that are intrinsically worthless. The won is supplied by the central bank to achieve the price stability target, while the supply of virtual currency increases by a fixed number. According to the basic price theory equation, as a simple proposition, cryptocurrency prices form a Martin Gale process [Schilling and Uhlig, 2019, p.20]. Based on the existing theoretical proposition, we applied the variance ratio verification method [Linton and Smetanina, 2016] and a simple technical chart method for empirical analysis. For the purpose of this study, the possibility of a bubble was empirically analyzed by analyzing the price volatility formed in the Korean virtual currency market over the past year, and brief policy implications for this were presented.

• Environmental and Resource Economics Review
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• v.31 no.1
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• pp.31-50
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• 2022

This paper estimates the price of standard waste bags that satisfies the polluter pays principle. Unlike previous studies, this paper suggests a method that can find new equilibrium prices using a structural relationship between the demand and cost function for the wastes. To do this, we employ the fixed-point iteration. The main findings of this paper are as follows. Assuming that the polluter pays principle is achieved at the average cost for the waste treatment, the price need to be set at a level about 3.12 times higher than the current one. The estimation result using a structural model, however, shows that the price should be set at a level four times higher than the present. This results are because the quantities reduced of the wastes make the cost per quantity of wastes due to the fixed costs increase. If applying the estimated price to the demand function, the amount of discharge of waste generated nationwide can be reduced by 10%.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.57 no.4
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• pp.576-581
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• 2008

Electricity Market in Korea can't provide locational price signal through energy price because energy market is CBP(Cost Based Pool) using uniform price. Generators don't want to locate in a densely populated load area(like the metropolitan area). Because they are paid more fixed cost in metropolitan area. This situation has loss and congestion occurred in power system. However energy market without price signal can't lead generator to the metropolitan. So, market participants should be provided price signal through the transmission price instead of energy price. This paper proposes transmission pricing method considering reliability cost in order to offer price signal. Also, it proposes the method to allocate the transmission cost to each transmission line user through a fair and a reasonable manner. The transmission price is decided by the reliability value of each line. If a transmission line of high reliability value is broke, users using that line will get a loss and a discomfort. So, it is fair that users using a transmission line of high reliability value pay more than the other users. Also, it is reasonable that a transmission line owner get paid more form users using that line.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.16
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• pp.59-81
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• 2001

There are two methods of quantifying the damages when the contract is avoided. One is 'concret' assessment, the other is 'abstract' assessment. The former looks to the actual cost incurred by the aggrieved party in concluding a contract for the substitute transaction, while the latter is based on the market price. The concrete method of assessment forms the starting point in the Civil Law systems. In the Common Law systems, it is likewise available. The aggrieved party is entitled to recover the difference between the cost of cover or (as the case may be) the proceeds of resale and the contract price. Both systems also recognize the abstract method of assessment. If the aggrieved party does not resell or cover, damages are equal to the difference between the price fixed by the contract and the market price. The CISG and the UNIDROIT Principles recognize expressly both concrete and abstract methods. Under the relevant articles, the aggrieved party can recover the damages assessed by one of the methods as well as any further damages such as loss of profit, incidental and consequential damages.

• Journal of Broadcast Engineering
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• v.21 no.5
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• pp.689-703
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• 2016

A dispute over price for retransmitting terrestrial channels between Terrestrial Television Systems and Cable TV System Operator(SO)s has been underway up to now since 2007 and expected to last unless there is a measure of extraordinary countermeasures. Thus, in this paper, we present a scheme for calculating the reasonable price on retransmitting terrestrial channels. Re-transmission price calculation scheme is presented in two ways. One is to calculate the price for the extent to which Terrestrial broadcasters and Cable broadcasters contribute, and the other is to calculate the price for terrestrial channels retransmitted by applying the method of Cable TV PP program fee basis. In addition, on profit-sharing scheme and criteria for program fee we present two ways of subscription, which are flat sum system and fixed rate system.

• The Journal of the Korea Contents Association
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• v.18 no.9
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• pp.44-54
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• 2018

In the construction project, the design field has a crucial effect on the success or failure of the final product, and it is becoming more important as a core area of national industrial development because it creates high value added by technology. In addition, since the design work is carried out based on professional technical personnel, in order to secure the quality and competitiveness of the design, it is necessary to continuously input the excellent manpower and develop the technology, and above all, the appropriate design cost must be ensured. However, as a result of reviewing the current status of the design cost criterion in Korea, problems such as mixed cost calculation method, inaccuracy of construction cost ratio method, and inactivation of cost plus fixed fee method were analyzed. Therefore, it is difficult to calculate the fair value reflecting the characteristics of the project when calculating the construction design price. Therefore, the price criterion should be improved so that the fair value of the design can be determined according to the contents of the project, By analyzing the correlation and multiple regression analysis of the projects and price information of the completed road construction design, the factors influencing the design price and the level of influence were analyzed.