• Environmental and Resource Economics Review
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• v.23 no.4
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• pp.617-641
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• 2014

Korean electricity market is a Cost-Based Pool (CBP) designed to minimize electricity production cost through cost by providing cost reduction incentives to generators. Generation companies have shown diverse efforts to reduce costs in CBP market such as procuring low-price fuels, installing high efficiency gas turbine and constructing power plants near the heavy-load site. Recently, as a way to improve CBP market, a proposal to exclude no-load cost from System Marginal Price (SMP) and to compensate generators ex post was suggested to Korea Power Exchange. This study analyzes the impact of excluding no-load cost from SMP on the cost reduction incentive of generators. We found that excluding no-load cost from SMP enhances the likelihood of decreasing the cost reduction incentives of LNG combined-cycle generators lying on the price-setting range.

• Agribusiness and Information Management
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• v.8 no.2
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• pp.1-8
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• 2016

The present study has aimed at analyzing the technical and scale efficiencies of credit utilization by the farmer-borrowers in Chittoor district of Andhra Pradesh, India. DEA approach was followed to analyze the credit utilization efficiency and to analyze the factors influencing the credit utilization efficiency, log-linear regression analysis was attempted. DEA analysis revealed that, the number of farmers operating at CRS are more in number in marginal farms (40%) followed by other (35%) and small (17.5%) farms. Regarding the number of farmers operating at VRS, small farmers dominate the scenario with 72.5 per cent followed by other (67.5%) and marginal (42.5%) farmers. With reference to scale efficiency, marginal farmers are in majority (52.5%) followed by other (47.5%) and small (25%) farmers. At the pooled level, 26.7 per cent of the farmers are being operated at CRS, 63 per cent at VRS and 32.5 per cent of the farmers are either performed at the optimum scale or were close to the optimum scale (farms having scale efficiency values equal to or more than 0.90). Nearly 58, 15 and 28 percents of the farmers in the marginal farms category were found operating in the region of increasing, decreasing and constant returns respectively. Compared to marginal farmers category, there are less number of farmers operating at CRS both in small farmers category (15%) and other farmers category (22.5%). At the pooled level, only 5 per cent of the farmers are operating at DRS, majority of the farmers (73%) are operating at IRS and only 22 per cent of the farmers are operating at CRS indicating efficient utilization of credit. The log-linear regression model fitted to analyze the major determinants of credit utilization (technical) efficiency of farmer-borrowers revealed that, the three variables viz., cost of cultivation and family expenditure (both negatively influencing at 1% significant level) and family income (positively influencing at 1% significant level) are the major determinants of credit utilization efficiency across all the selected farmers categories and at pooled level. The analysis further indicate that, escalation in the cost of cultivation of crop enterprises in the region, rise in family expenditure and prior indebtedness of the farmers are showing adverse influence on the credit utilization efficiency of the farmer-borrowers.

• Journal of Korea Society of Industrial Information Systems
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• v.19 no.3
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• pp.75-85
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• 2014

This paper is to develop and estimate a closed form inflation model using the estimates for real marginal costs in manufacturing industries during the sample period 1975-2010. The production function in manufacturing industry incorporates labor, capital, domestic material, and foreign material, assuming constant returns to scale technology and AR(1) process of technological coefficient. We derive real marginal costs from firm's cost minimization with quarterly data and provide new evidences on the new Keynesian Phillips curve for Korea. The main empirical result is that the closed form coefficients ${\delta}_1$ and ${\delta}^{-1}_2$ in manufacturing for PPI inflation proved to be 0.5086 and 0.8779 respectively, similar to the estimates in the U.S. case. These results also are consistent with the functional relationship between the coefficients in hybrid model and its closed form. Thus the paper suggests that the empirical studies on inflation dynamics need to focus on the manufacturing industry with market power, treating PPI inflation as the dependent variable.

• Journal of Wetlands Research
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• v.8 no.2
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• pp.83-92
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• 2006

In this regard, we propose researches on the actual restoration costs of destroyed wetlands caused by development projects, as a way to derive the value of wetlands. And, we are willing to contribute in extracting the true value of wetlands by seeking the marginal cost of restoring destroyed wetlands, based on data such as biodiversity indicator which tells the recovery process of fauna and flora including fishes and birds. This means that once wetlands are destroyed, no one can tell the costs to restore them only in a view of costs which is one of two sides in economic analysis. Accordingly, knowing their restoration costs through derivation of marginal costs would give more precise decision-making for wetlands related projects.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.35
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• pp.41-69
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• 2007

This study analyzes some important implications for the forthcoming revision of eUCP through the methodology of expected utility maximization theory. The overall results are as follows. First, beneficiary with an initial wealth has a risk-averse utility in traditional letter of credit transaction, and he would be more risk-averse in eUCP transaction. Secondly, the beneficiary who has risk-averse utility will pay for the risk premium to reduce the risk of corruption of an electronic record by means of cost of loss reduction activities. Thirdly, the cost of loss reduction activities is represented by a convex cost function, Fourthly, a risk averse beneficiary pursues loss reducing activities to the point where the expected marginal product of loss reduction is less than its marginal cost. Fifthly, a more risk-averse eUCP beneficiary will always select a higher level of loss reduction as long as the effectiveness of loss reduction is certain. Sixthly, when the effectiveness of loss reduction is uncertain, the more risk-averse eUCP beneficiary does not necessarily choose a higher level of loss reducing activities. Finally, it would be more reasonable that eUCP Article 11 should protect eUCP beneficiary who pursues a higher level of loss reducing activities.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.60 no.2
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• pp.257-265
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• 2011

As the competitive market system has been introduced to the electrical power trade, the priority concern would be that the price of electrical power should be reasonable. It is because, when this rule is solid, we can avoid the distortion of competition and assure the greater efficiency in management. LMP(Locational Marginal Price) means marginal price at each bus. This components consist of energy, loss and congestion cost. At this point, the LMP result that is calculated by traditional model is changeable by the location of the slack and can not be used in bilateral Transaction. This paper proposed algorithm is proved its rationality and credibility by comparing the result of the simulation of virtual 6_bus system that is calculated by traditional method, and showed that the LMP components are changed according to the Transaction Strategy. Furthermore, It shows the effect of additional congestion cost on the transmission line that has bottle neck frequently by simulation.

• Proceedings of the KIEE Conference
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• 2006.11a
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• pp.43-45
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• 2006

Because Cost Based Pool(CBP) has any locational signals for electricity price, there are any locational incentives for construction of new power plant high efficient. in case of Korean electricity power market, this incentives are very important to reduce loss and congestion. This Paper represent the effect of MLF(Marginal Loss Factor) as locational price signal in short period. we investigate mathematically loss reduced effect of MLF and prove to reduce transmission loss using 3bus test system.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2003.10a
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• pp.780-784
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• 2003

This parer propose a new method to calculate nodal price which is very useful data in electric market under non-optimal operation. To calculate nodal price, we employ marginal cost and power flow, and consider network loss, generator capability, and line capability. The proposed method is applied to the test system and the usefulness is verified.

• Korean Management Science Review
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• v.26 no.1
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• pp.113-126
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• 2009

By the newly emerging network access technology, we face the new heterogeneous network environment. Focusing on the co-existence of multiple access network technology and the complex service needs of users, the wireless service operators should present the stable service quality for every user. For this, the service operators should build the new operation framework which combine the pre-established network and newly adopted one. Our problem is finding the optimal heterogeneous network operation framework. We suggest market-based marginal cost function for evaluating the relative value of resource of each network and develop the whole new heterogeneous network operation framework. To test the applicability of developed operation framework, we build large-scale JAVA simulator. By this development, we can easily test the new network environment in practical engineering field.

• Journal of Technology Innovation
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• v.10 no.2
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• pp.107-129
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• 2002

Expansion and enhancement of information and communication infrastructure can create a market closer to an ideal type for a perfect competition, utilizing a cyber space in the network (with the expanded usage of Internet and e-commerce) and it could be a market of a monopolistic form. The government can take one of the two approaches responding to this monopolization of the digital market. First, the government maintains laissez-faire policy since the monopoly cannot be maintained over a long period of time due to an increasing in the production, decrease in the price, profit resulting from this and rapid technology evolution. Second, the government can actively interrupt the monopolization of the digital market. Monopolization in a digital market can lead to a market failure. Unstable market structure and too much frequent merger and acquisition contribute to making the digital market very dynamic. Information goods exchanged in the digital market have the features of very low marginal cost required to copy the original product whereas its initial fixed cost is very high. This explains why the information products are not priced based on the existing marginal price determination principles and why companies producing them have various product sales strategies (price/product differentiation strategy, and other sales strategies).