Search Result

Srl

Item

ID: 103471

Effects of consumer subsidy on household fuel switching from co: a case study for anthracites in Korea / Park, Hojeong; Kwon, Hyucksoo

Park, Hojeong	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2011.

Summary/Abstract

The Korean coal industry is in a transition under low carbon policy through the steady reduction of coal production. Since consumer subsidy for the consumption of anthracites briquette in low-income households caused a distortion in domestic coal market, the so-called coupon program will be the first target in energy reform policy in order to induce fuel switching from anthracites to alternative clean energy. This paper tries to identify various factors that influence households' fuel switching decision. Disutility from briquette consumption is also considered as an important factor. Using the 2007 census data on briquette-consuming households, it is found that the coupon program provides an adverse effect to switching fuels to clean energy while the disutility of briquettes is positively associated with the probability of fuel switching. However, the empirical finding suggests that the policy alone attempting to remove coupon program may fail to switch fuels unless the cost of boiler changes is substantially reduced through the provision of accessible networks to alternative energy sources. It indicates that reform policy for consumer subsidy must be understood in line with more comprehensive regional energy plans to resolve energy poverty issue.

Key Words

Consumer Subsidy ; Fuel Switching ; Anthracite

In Basket

Export

ID: 136194

Korea’s emission trading scheme and policy design issues to achieve market-efficiency and abatement targets / Park, Hojeong; Hong, Won Kyung

Park, Hojeong	Article
	0 Rating(s) & 0 Review(s)

Summary/Abstract

In 2008, the government of Republic of Korea (Korea) announced the national abatement target aiming at 30% reductions from the Business-as-Usual projections by 2020. Accordingly, the Emission Trading Scheme (ETS) will be implemented from 2015 onwards. As ETS performance substantially depends on the structural design, it is critically important to examine the details of Korean ETS for the achievement of cost effectiveness and concurrent development of an active emission trading market. This paper addresses several policy design issues for this purpose. After providing an overview on the current framework of Korean ETS, we propose ways to achieve flexibility, consistency and market efficiency of the program in consideration of the preexisting policies. Issues in policy design are discussed by focusing on allowance allocation, market stabilization measures and price mechanism in the emission and energy markets in Korea. This paper will serve as a practical guideline for establishing sustainable and market-efficient Korean ETS that can be compatible with the international standards as in the EU ETS.

Key Words

Korea ; Market Efficiency ; Policy Design ; Allowance Allocation ; Korean ETS ; Market-based mechanism ;
Policy Consistency ; Energy Market in Korea

In Basket

Export