• Environmental and Resource Economics Review
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• v.19 no.4
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• pp.829-852
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• 2010

The investment in Clean Development Mechanism (CDM) projects is increasing rapidly as the first implementation period began in 2008. This paper examines on the optimal level of primary Certified Emission Reduction (CER) price, subsidiary original projects investment cost and expected issues CER per year, using UNFCCC CDM Project Design Document (PDD) data. Real option model is developed to incorporate a case where the investment is irreversible and underlying asset price is uncertainty. This study employs Real option approach which allow the optimal level regard as economic feasibility of CER price has analyzed with NPV (Net Present Value) and Black-Scholes call option(Real option) value. Finally, CER supply curve and price elasticity of supply are estimated.

• Journal of Climate Change Research
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• v.3 no.4
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• pp.271-280
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• 2012

The study aims to analyze economic viability of Integrated Gasification Combined Cycle, an innovative technology to utilize clean coal effectively and efficiently in the era of energy crisis. The study is conducted to evaluate business value of 300 MW IGCC demonstration plant technology development based on binomial option, in consideration of uncertainty of fuel price. Binomial option is one of the real option valuation methods, which is ideally suited to irreversible decision making under uncertainty. With this analysis, it shows that investment value is higher compared with economic evaluation based on discounted cash flow, since this method can measure quantity. As a result, this study is proved to be economically feasible, which have a positive impact on the next generation of IGCC and the connection with Carbon Capture and Storage.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.26 no.4D
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• pp.617-626
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• 2006

The purpose of contingency estimate is to manage the increase in construction cost and the extension of the term of works due to the inevitable occurrence of uncertain situations. The aim of contingency strategies have two intentions. One thing, can be called a passive strategy, gets ready for construction cost increase due to uncertainty factors, the other thing, can be called a active strategy, gets rid of the obstruction factors of work prior to construction performance. Therefore, from the view point of medium and long term, there is necessary to accumulate data in conjunction with design modification cases and carefully analyze uncertainty factors from construction types and characters. Therefore, this thesis will analyze design modification case at a special work such as highway and select factors that affect construction cost and present contingency estimate process using regression analysis.

• Korean Journal of Construction Engineering and Management
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• v.12 no.3
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• pp.121-130
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• 2011

Real option values of early termination payment for selected BTO PPI projects are studied using binomial models. Two cases of early termination payments are considered; an option with the condition of private participants' default, and an option without the condition. Values vary depending upon parameter values such as revenues, costs, discount rates, debt ratio, and volatility of revenues. For selected projects, the option values without the default condition are estimated as 1%~7% of total project costs, whereas the option values with the default condition are estimated as 0%~1.89% of total project cost. When actual revenues differ from the forecasted revenues, apparently the option values deviate from the values based upon the forecasted revenues. When actual revenues fall short of the forecasted revenues, the option values increase by a large amount whereas the option values decrease by a small amount in the opposite case. This implies that the option values can be quite bigger than the values based upon the forecasted revenue especially when the revenue forecast uncertainty is large. This study is expected to play an important role in improving the early termination payment option policy of the government in PPI projects in Korea.

• Journal of Intelligence and Information Systems
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• v.7 no.1
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• pp.81-95
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• 2001

Plant construction projects usually take much higher uncertainty and risks than the projects from other domains. This implies the importance of plant construction project management should be more emphasized than the other domain. Especially, the overall successes of the projects often depend on the performance of process planning and scheduling performed at the initial stage of the project. However, most plant construction projects suffer great difficulties in establishing proper process planning and scheduling timely because of unstructureness and dynamicity of environment of the project itself In this paper, we propose a knowledge-based process planning and scheduling approach in a plant construction domain to cope this problem. First, we modulize process planning knowledge and present the knowledge representation scheme. Second, we propose an inferencing mechanism to build a process planning for plant construction based on the represented process planning knowledge. Since our approach automate the initial process planning, which was usually done by manual way, it can improve the correctness and also completeness of the process plan and schedule by reducing the time to plan and allowing simulations on the various situation. We also design and implement this our approach as a real working system, and it is successfully applied to real plant construction cases from a leading construction company in Korea. Based on this success, we expect our approach can be easily applied to the projects of other areas, while contributing to enhancement in productivity and quality of project management.

• Journal of Korean Tunnelling and Underground Space Association
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• v.13 no.1
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• pp.19-32
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• 2011

The risk assessment is essential for tunnel design in order to minimize risks associated with uncertainty about geological conditions and tunneling method. This paper provides a comparative risk analysis of a large single bore TBM driven tunnel against sequentially excavated NATM tunnel for a mixed-face large-diameter urban tunnel project near or under a river. The focus of this assessment is on the risks associated with the tunnel excavation methods, in particular whether a TBM or NATM presents more or less risk to achieve the planned excavation duration and bring the project within the estimated bid price. First, the impacts and risks to tunnel construction under each method were discussed, and the risks were scored and ranked in the order of perceived severity and likelihood. Finally, the assessment from a risk based perspective was conducted to decide which alternate tunneling method is more likely to deliver the project with the least time and cost. It is very important to note that this study is only applied to this tunnel project with specific geological conditions and other contract requirements.

• Clinical and Experimental Pediatrics
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• v.51 no.7
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• pp.671-689
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• 2008

The economic recession of North Korea has been prolonged, the need for humanitarian assistance for the women and children of DPRK has been raised. In March 2006, South Korean government signed MOU with World Health Organization (WHO) to financially support "Improving Women's and Children's Health in DPRK (IWCH)" project. The assistance projects through UNICEF and the non-government organizations of South Korea were also followed. IWCH project consists of three parts; nutrition, disease management, children and maternity care. The first term (2006-2007) of the project leading by WHO was finished, and the second term (2008-2010) is just begun. The projects driven by NGOs have relatively been delayed due to difficulties in negotiating on project contents and places with North Korea. Recently, however, re-modeling processes of an obstetric/gynecology hospital and a children hospital in Nampo were started. Up to recently, South Korean government has played only a limited role in the humanitarian assistance for North Korea. IWCH project is, however, a full-scale initiative driven by government based on a systematic review of need and priorities. A significant amount of budget and relatively long term (five year) project compare to the previous short term and small size programs were expected to make more meaningful achievement. Despite these positive aspects, the project remains a list of unsolved problems a lack of mutual trust, a different decision making process between South and North Korea, a lack of conflict management process, and unpredictability and complexity of international politics. In spite of such kind of political uncertainty, the health care sector will be a leading area in the process of improving relationship between South and North Korea, particularly, humanitarian assistance for women and children will play a crucial role in the process. The successful implementation of IWCH project, therefore, will contribute to provide the reference model in developing the mutually constructive relationship between South and North

• Journal of Korea Port Economic Association
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• v.28 no.3
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• pp.235-257
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• 2012

Recently the role of ports has been changed to satisfy flexibly needs of demands in global economy. A new concept for ports is not just a place for international trade but an important nodal point in logistics chain. The changing environment like this trend creates a high degree of uncertainty and leaves port managers confused with the question how to respond effectively to dynamic market. The latest studies provide that the port must have a good hinterland to achieve competitive advantages in a logistics chain. Korean Government announced "The Master Development Plan for Port Logistics Parks in Korea" in 2006. This contains the plan of hinterland construction of Busan New Port to achieve the status of logistics hub in Asian market. Previous studies rely solely on traditional DCF(discounted cash flow) analysis for investment of hinterland. However DCF method does not include irreversibility, uncertainty and the choice of timing for investment project. This thesis introduces a ROPM(real options pricing model) which overcomes the limitations of traditional valuation methods. The option valuations in this study utilize the Black-Scholes model, the binomial model and the MonteCarlo simulation to value investment opportunity of a port hinterland. In this thesis, an attempt is made to modify the NPV criterion by incorporating the real options approach, and its application is demonstrated in a hinterland construction investment plan. This research has conducted an empirical analysis by calculating economic value of the investment for a hinterland of Busan New Port.

• Journal of the Korea Institute of Building Construction
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• v.10 no.4
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• pp.83-93
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• 2010

With construction projects continuously becoming more massive and complex, risk factors have been consistently increasing. To achieve a successful project, it is very important to identify and cope with such risk factors. Therefore, the purpose of this study is to suggest plans of reducing risk, not only for describing the drafting process for construction planning but also for systematically organizing constraints and risk factors in earth work, foundation work and reinforced concrete construction. To achieve these objectives, this study 1) analyzes previous theories about risk classification structure, 2) performs a case study of an actual project to embody the problems of safety management by analyzing the results of an interview with a construction engineer. In conclusion, the following factors were systematically organized: 1) characteristics of construction site (purpose, structure, floor, etc.); 2) the actual application conditions of the main construction methods; 3) the relationship between constraints and risk factors.

• The Sea:JOURNAL OF THE KOREAN SOCIETY OF OCEANOGRAPHY
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• v.20 no.2
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• pp.102-118
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• 2015

This study summarized the results of the international ocean reanalysis intercomparison project. We introduced the characteristics of various ocean reanalysis systems and analyzed the assimilated performance on the typical eight oceanic variables (heat content, steric height, sea level, surface heat fluxes, mixed layer depth, subsurface salinity, depth of $20^{\circ}C$ isotherm, sea ice). In general, ensemble means show better estimations than those of any individual ocean reanalysis, but it depends on analyzed regions and variables. Among the eight oceanic variables, salinity and sea ice variabilities have large spreads among models. The deep sea, Southern Ocean, and coastal regions including western boundary current commonly appear as the areas with largest uncertainty between different objective analyses and assimilation models. We expect that intercomparison project for the ocean assimilation models independently operated in Korea should be processed, which allows us to join relevant international programs in the near future.