• Environmental and Resource Economics Review
• /
• v.26 no.1
• /
• pp.37-56
• /
• 2017

This study analyzed the mutual causal relationship between energy consumption, production, and export for manufacturing industry in Korea. The Korean manufacturing industry was divided into nine industries and panel data was constructed from 1991 to 2013. The panel Granger causality test method developed by Demitrescu and Hurlin (2012) was used along with the Vector Error Correction Model. This analysis showed that there was Granger Causality from production to energy consumption, from exports to energy consumption. However, Granger Causality was not established in the opposite direction. Therefore, this result supports the conservation hypothesis of Qzturk (2010) that energy-saving policies in the manufacturing sector can be implemented without adverse effects on production or exports in short-run. There is a long-run cointegrating relationship between production, energy consumption, exports, labor, and capital in the Korean manufacturing sector. Furthermore, the energy consumption contributes to the increasing of production in long-run equilibrium relationship.

• Bulletin of the Korean Chemical Society
• /
• v.34 no.3
• /
• pp.810-814
• /
• 2013

The thermodynamic parameters for the intercalative interaction of structurally related well known intercalators, 9-aminoacridine (9AA) and proflavine (PF) were determined by means of fluorescence quenching study. The fluorescence intensity of 9AA decreased upon intercalation to DNA, poly[$d(A-T)_2$] and poly[$d(G-C)_2$]. A van't Hoff plot was constructed from the temperature-dependence of slope of the ratio of the fluorophore in the absence and presence of a quencher molecule with respect to the quencher concentration, which is known as a Stern-Volmer plot. Consequently, the thermodynamic parameters, enthalpy and entropy change, for complex formation was calculated from the slope and y-intercept of the van't Hoff plot. The detailed thermodynamic profile has been elucidated the exothermic nature of complex formation. The complex formation of 9AA with DNA, poly[$d(A-T)_2$] and poly[$d(G-C)_2$] was energetically favorable with a similar negative Gibb's free energy. On the other hand, the entropy change appeared to be unfavorable for 9AA-poly[$d(G-C)_2$] complex formation, which was in contrast to that observed with native DNA and poly[$d(A-T)_2$] cases. The equilibrium constant for the intercalation of PF to poly[$d(G-C)_2$] was larger than that to DNA, and was the largest among sets tested despite the most unfavorable entropy change, which was compensated for by the largest favorable enthalpy. The favorable hydrogen bond contribution to the formation of the complexes was revealed from the analyzed thermodynamic data.

• Environmental and Resource Economics Review
• /
• v.15 no.1
• /
• pp.95-133
• /
• 2006

This research first reviewed and analysed the current domestic situation of the voluntary agreement implementation and then it developed the policy implementation scenarios which will be applied to the model, KORTEM_ V.2. The model, consisted with 83 industries and commodities, examined the economic and environmental impacts of this policy instrument. Depending on the efforts of participating sectors and agents for fuel substitution and energy efficiency improvement, it has been evaluated that the voluntary agreement could be the "no-regret" policy. In other words, if the participating sectors and agents can achieve the voluntary energy conservation and emission reduction target without the negative impact on output level, the reduction of national emission will be achieved by creating the economic benefit, simultaneously. Therefore, for the successful implementation of voluntary agreement, this study emphasized the importance of expansion and strengthening of the current financial and institutional support for participating sectors and agents.

• Environmental and Resource Economics Review
• /
• v.24 no.4
• /
• pp.679-708
• /
• 2015

Almost all of natural gas demand in Korea is currently met by overseas LNG imports. More than 80% of LNG is imported through the mid to long-term contracts with oil-linked pricing. Despite LNG price estimation provides valuable information with various interested parties, an empirical study as well as an econometric model on LNG price hasn't yet been available in Korea. This paper therefore, aims at analyzing not only whether the long-run equilibrium relationship between oil prices and Korean LNG prices exists but also whether structural change occurred in such relationship. Further, it aims at building a conditional VECM taking account of a structural change. According to the final model, an oil price shock is passed through to the LNG prices in nonlinear and different manner from the past.

• Environmental and Resource Economics Review
• /
• v.21 no.2
• /
• pp.371-416
• /
• 2012

This study has developed Computable General Equilibrium (CGE) model reflecting endogenous growth economic theory, with the aim of analyzing double dividend hypothesis. This study analyzes possibility of economic growth and environmental improvement at the same time when government recycles the revenue of carbon tax to reduce existed taxes such as consumption tax, labor income tax, corporate tax. It also assesses the case of subsidy on R&D investment of renewable energy. With new and renewable generation technology adopted and disseminated, GDP loss would be lessened to a great degree. Tax recycling would provide economic gain by reducing distortion existed in the existing fiscal structure. The magnitude of economic gains from carbon tax recycling is biggest for recycling into corporate tax, and labor income tax, and then consumption tax in this order. It is also shown that double dividend effects occur in dynamic terms when government uses a carbon tax revenue to subsidize on R&D investment. At the end of the analysis period, emissions reduction would not result in GDP loss but in GDP gain. In particular, recycling into R&D increase would produce the largest and fastest GDP gain. Thus, implementing emissions reduction target would require careful consideration of economic effects by various policy instrument, including carbon tax.

• Environmental and Resource Economics Review
• /
• v.17 no.2
• /
• pp.313-326
• /
• 2008

This paper is concerned with the effect of an increase in the import price of LNG on the Korean economy and industries. A computable general equilibrium analysis is applied to compute the comparative-statical effect of 10% rise of LNG price. The price increase places relatively heavy burden on the city gas, oil products and thermal power, decreasing their outputs and domestic sales by relatively larger percentages than other industries. The 10% increase in the LNG price reduces GDP by 0.4% and raises the general price level by 0.08%. The increase in oil price resulting in the same decreasing rate of GDP caused by the 10% LNG price rise turns out to raise the general price level and reduce the consumer's welfare in terms of equivalent variation by less percentage than the increase in LNG price.

• Environmental and Resource Economics Review
• /
• v.19 no.2
• /
• pp.215-242
• /
• 2010

This study constructs a bayesian neoclassical DSGE model that applies oil usage. The model includes technology shocks, oil price shocks, and shocks to energy policies as exogenous driving forces. First, this study aims to analyze the roles of these exogenous shocks in the Korean business cycle. Second, this study examines the effects of long-term changes in the energy consumption structure, including the reduction in oil use as a share of energy consumption and improvement in oil efficiency. In the case of oil price shocks, results show that these shocks exert recessionary pressure on the economy in line with those obtained in the previous literature. On the other hand, shocks to energy policies, which reduce oil consumption per capital, result in opposite consequences to oil price shocks, decreasing oil consumption. Also, counterfactual exercises show that long-term changes in the energy consumption structure would mitigate the contractionary effects of oil price shocks.

• Environmental and Resource Economics Review
• /
• v.19 no.3
• /
• pp.509-546
• /
• 2010

Although coal has been utilized as major fuel, it is known as 'most climate unfriendly' fuel. Carbon tax or tradable permit policy has been discussed as major measure for reducing production and consumption of coal, but it might be more efficient to remove subsidy on coal production and consumption. This study examines economic and environmental effects of recycling revenue from reducing subsidy on the use of coal to foster climate friendly fuel (ligneous biomass) by price subsidy or increased public expenditure. A static CGE model was applied to analyze the welfare consequences and economic impacts of two policy measures. The result shows that price subsidy policy is more desirable than creation of public demand in terms of welfare as well as overall economic impacts.

• Environmental and Resource Economics Review
• /
• v.20 no.4
• /
• pp.689-733
• /
• 2011

This study evaluates a novel scheme to trade sulfur dioxide emission permits subject to non-uniform rates. These rates are based on generators' marginal costs of compliance with environmental policy in a hypothesized least social-cost solution. This scheme is compared against the existing trading program used by the U.S. Environmental Protection Agency, featuring permits tradable one for one. Both policies are modeled to yield identical aggregate emissions. A numerical partial-equilibrium model of the U.S. energy industry is used to infer sulfur dioxide concentrations and health damages, as well as producer and consumer surplus, under the two policies. Regional pollution levels are found to vary across the two policies significantly. The system of exchange rates is estimated to outperform the uniform-trading scheme by $2.2 billion in industry profits and $2.1 billion in health damages, but to reduce consumer surplus by $6.7 billion. Paradoxically, exchange rates are thus estimated to lower total welfare by $2.5 billion. This is due to conceptual mechanism-design problems, as well as empirical issues.

• Environmental and Resource Economics Review
• /
• v.28 no.4
• /
• pp.583-615
• /
• 2019

This paper investigates the level of decoupling between greenhouse gas emissions and economic growth in Korea. Despite previous studies mainly stressed the existence of the Environmental Kuznets Curve, the lack of investigations in the level of decoupling constraints further policy suggestions. This study analyzes the level of decoupling in the short- and long-term, focusing on short-term volatility of GHG emissions income elasticity. In the long run, there is no decoupling in Korea because a robust causal relationship exists between GHGs, GDP, and fossil fuels. However, the short-term volatility is clearly identified under the long-term equilibrium(coupling), indicating there is the relative decoupling in the short run. The results show that fossil fuel dependence is a significant factor that increases short-term volatility(decoupling) and breaks the causal link(coupling) between GHGs and GDP.