• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.10a
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• pp.539-553
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• 2004

This paper models and solves contracting schemes for both when quality is perfectly observable and when quality is not perfectly observable in supply chain. When quality is perfectly observable, the first-best optimal solution which is that the marginal utility of procurer obtained from the quantity and quality supplied by suppliers (the price) is equal to the marginal cost to produce the quantity and quality is obtained. However, when quality is not perfectly observable to procurers the optimal solution cannot be the first-best but the second-best where the price is greater than the marginal cost to produce the quantity and quality and social welfare is less than that of the first-best solution.

• Journal of Korean Society of Transportation
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• v.25 no.5
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• pp.183-193
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• 2007

Traditionally, a congestion charge based on first-best congestion pricing theory, namely, the theory of marginal cost pricing theory, is equal to the difference between marginal social cost and marginal private cost. It is charged on each link so as to derive a user equilibrium flow pattern to a system optimal one. Based on this theory this paper investigates on the characteristics of first-best congestion pricing of multiple user class on road with variable demand, and presents two methods for analysis of social and spatial equity. For these purposes, we study on the characteristics of first-best congestion pricing derived from system optimal in time and in monetary unit, and analyze equity from this congestion pricing with an example network.

• Journal of Energy Engineering
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• v.15 no.1 s.45
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• pp.14-22
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• 2006

Various pros and cons are raised as to the nuclear and renewable power portions. In order to generate scientific, objective, and comparative data, this study reviewed energy policies of some countries and derived 34 possible energy mix scenarios depending on the nuclear portion, the renewable portion and the make-up power sources. For each scenario, the unit electricity cost was calculated using the BLMP (Base Load Marginal Price) and SMP (System Marginal Price) methodology, which is currently adopted in Korean electricity market. The unit electricity cost for the current energy mix was 22.18 Won/kWh and those fir other scenarios spreaded from 19.74 to 164.07 Won/kWh excluding the transmission costs and profits of the electric utility companies. Generally, the increased nuclear power portion leads reduction in the unit electricity cost while the trend is reversed in the renewable power portion. Notable observation is that when the renewable power portion exceeds 20%, as the scenario cannot enjoy the benefit of cheap base load, the unit electricity cost at low demand time zone is increased.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.59 no.5
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• pp.871-881
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• 2010

In the uniform price electricity market or bilateral electricity market, the energy transactions in which the network is not considered and ISO's system operation costs which ISO try to minimize are settled separately. In this paper, transmission loss, one of the ISO's system operation costs, was dealt. The conventional marginal loss allocation method gives economic signals but three aspects have to be considered; excessiveness, arbitrariness and cross-subsidy. In this paper, marginal loss compensation efficiency method was suggested which consider those aspects of the conventional marginal loss allocation method. Also the characteristics of the marginal loss compensation efficiency were analyzed in the appendixes. And simple 2-bus system and IEEE 14 bus system were used to explain these characteristics.

• Korea Trade Review
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• v.46 no.2
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• pp.107-119
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• 2021

Using a trade policy, government can shift profits from foreign firms to domestic firms. This paper will reexamine how asymmetric information can affect the equivalence of tariff and quota in a duopoly, where one domestic firm competes with one foreign firm. It can happen that the domestic firm has informational advantage against the government. Within this framework, the domestic firm has private information about own marginal cost as well as the foreign firm's. The domestic firm would exploit the advantage to draw a favorable policy from the government. When the government is misled, social welfare would decline. This paper will guide how the government can extract information from the domestic firm by offering a menu of tariff or quota. Previous studies showed that quota demands information more than tariff. With the principle of revealed information, the domestic firm chooses tariff (quota) if the marginal cost of foreign firm is low (high). The quota level will be high (low) if the marginal cost of domestic firm is high (low). To prevent misrepresentation, the domestic firm should be charged when quota is implemented. When the quota level is low, the domestic firm is charged additionally. This paper can contribute to the literature of trade policy and information.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.31 no.3
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• pp.274-285
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• 2021

Objectives: The question of whether the level of fees paid to working environment measurement agencies is appropriate has long been a matter of concern to the government. In addition, measurement institutions express dissatisfaction with their level of compensation, which has a great influence on the evaluation of a subject's policy. This study is intended to find a way to appropriately calculate working environment measurement fees. Methods: We looked at the principle of fee determination as a basic theory of fee calculation used in fee calculation, the legal and academic aspects of the general method of fee calculation, and government cost calculation standards. Furthermore, we reviewed the research methods applied so far to derive a method of calculating fees appropriate for this environment. Results: The working environment measurement environment is different from other commission calculation environments. The other environment is to appropriately calculate the service price provided by a monopoly public enterprise, while the situation is to appropriately calculate the fees provided by competitive private enterprises. Therefore, the service delivery environment and the delivery entity are different. In this case, the appropriate method of calculating service fees would be competitive pricing. There have also been many problems under the method of calculation by service cost. Conclusions: First, the working environment measurement fee requires an accounting correction of endogenous variables. Second, the theory of calculating fees appropriate for this situation is appropriate for competitive pricing that applies to private competitors. Third, the government should make efforts to make the service supply market a fully competitive market while ensuring that the service fee level is determined at the marginal cost level. Fourth, economically, research on marginal cost levels is needed.

• Proceedings of the KIEE Conference
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• 2001.11b
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• pp.266-268
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• 2001

As we move to competition, transmission cost become more and more important. At the wholesale competition market, the process of settlement must include the cost of transport. The aim of this paper is to calculate approximate transmission cost at each power sales district office using KEPCO data. We considered investment cost, transmission constraints and marginal losses as cost elements which must be taken into account in transmission cost calculation.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.67 no.2
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• pp.173-178
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• 2018

This study organizes scenarios on the power supply and demand plans considering the uncertainties and the portion of distributed energy resources. In analysing the scenarios, it estimates total electricity supply cost in the social aspect, natural gas demand and air pollutants emission including carbon dioxide. Also the analysis is performed to estimate the marginal cost of carbon dioxide reduction for the fuel switching from coal to liquified natural gas. In result, the social cost could be decreased by replacing some portion of renewable energy by LNG-based combined heat and power and delaying the construction of large base-load generators such as coal and nuclear plants. The marginal carbon dioxide reduction cost by fuel switching is in plausible range for fuel switching to be an option for carbon dioxide emission reduction when the social cost is considered.

• Journal of Energy Engineering
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• v.14 no.3 s.43
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• pp.167-172
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• 2005

This paper presents a methodology to support decision making for distribution system planning based on value. To evaluate the reliability value, we employ valued-based distribution reliability assessment. To evaluate the harmonics value, we employ a marginal pricing method, and by using reliability cost, harmonics cost, and construction cost, we can make the most economic decision. By applying the method to the real system, we show this method can get the best result which meet reliability and harmonics level.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.49 no.8
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• pp.374-379
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• 2000

The nodal marginal cost and the congestion charge are used as the econimic signals for the electricity price and new invetments in deregulated power systems. In this paper, the nodal marginal cost and the congestion charge are calculated by using the shadow prices resulted from the calculation of Optimal Power Flow(OPF). Linearization of inequality constraints and piecewise linear cost functions make an OPF problem LP-based forms. In order to use the shadow price, the Interior Point(IP) algorithm is applied as a solution technique to the formulation. This paper proposes an algorithm to determine efficients initial points which are guaranteed to be interior points.