Valuing Improved Power Supply Reliability for Manufacturing Firms in South Korea: Results from a Choice Experiment Survey

An outage of electricity may cause considerable economic damage to industrial sectors. Thus, South Korea electricity authorities demand information about the value of improved power supply reliability for the manufacturing sector to implement them in planning electricity supply. This article aims to measure the value using a specific case of South Korean manufacturing firms. The choice experiment (CE) approach is adopted for this purpose. A nationwide CE survey of 1148 manufacturing firms was undertaken. The firms revealed statistically significant willingness to pay for a decrease in the duration of interruption, avoiding interruption during daytime (9 a.m. to 6 p.m.) rather than off-daytime (6 p.m. to 9 a.m.), and preventing interruption during weekdays rather than weekend. For example, they accepted a 0.02% increase in the electricity bill for reducing one minute of interruption during electricity outage, a 2.98% increase in the electricity bill to avoid interruption during the daytime rather than off-daytime, and a 1.60% increase in electricity bill for preventing interruption during weekdays rather than weekends. However, they put no importance on the season of interruption. These results can be useful for policy-making and decision-making regarding improving electricity supply reliability.

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Demand Function for Industrial Electricity: Evidence from South Korean Manufacturing Sector

Sustainability ◽

10.3390/su11185112 ◽

2019 ◽

Vol 11 (18) ◽

pp. 5112

Author(s):

Kim ◽

Yoo

Keyword(s):

South Korea ◽

Demand Function ◽

Manufacturing Sector ◽

Estimation Method ◽

Electricity Consumption ◽

Nationwide Survey ◽

Economic Benefits ◽

Manufacturing Firms ◽

Cross Sectional ◽

Least Absolute Deviations

Electricity is a crucial input to the industrial production of South Korea. Estimating the demand function for electricity in the manufacturing sector is an important task because electricity consumption in the manufacturing sector accounts for 56.3% of total electricity consumption in South Korea. Thus, this article tries to estimate the demand function for industrial electricity in the manufacturing sector of South Korea using cross-sectional data for analyzing the influence of manufacturing firms’ characteristics. To this end, 946 observations collected from a nationwide survey of manufacturing firms in 2018 are used and analyzed. As a robust approach, the least absolute deviations estimation method is applied to obtaining the demand function. The results show that the price elasticity and the sales amount elasticity of the industrial electricity demand are estimated to be −0.9206 and 0.2568, respectively, which are statistically significant at the 1% level. Furthermore, the economic benefits of industrial electricity consumption are computed to be 1.46 times as great as the price of electricity. The results of this study can be utilized in policy planning, making, and evaluation.

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Price Elasticity of Heat Demand in South Korean Manufacturing Sector: An Empirical Investigation

Sustainability ◽

10.3390/su11216144 ◽

2019 ◽

Vol 11 (21) ◽

pp. 6144

Author(s):

Hyo-Jin Kim ◽

Jae-Sung Baek ◽

Seung-Hoon Yoo

Keyword(s):

South Korea ◽

Price Elasticity ◽

Demand Function ◽

Manufacturing Sector ◽

Estimation Method ◽

Economic Benefits ◽

Manufacturing Firms ◽

Hot Water ◽

Heat Consumption ◽

Heat Demand

Heat is a crucial input supplied in the form of steam or hot water to industrial production of South Korea. Estimating the demand function for heat in the manufacturing sector is all the more important a task in terms of policy because heat consumption in the manufacturing sector is increasing because using heat directly as a fuel can reduce the air pollutants emissions and save energy when compared with using electricity, which is secondary energy. Thus, this article tries to estimate the demand function for industrial heat in the manufacturing sector of South Korea using cross-sectional data for analyzing the influence of manufacturing firms’ characteristics. To this end, 257 observations collected from a nationwide survey of manufacturing firms in 2017 are used and analyzed. As a robust approach, the least absolute deviations estimation method is applied to obtain the demand function. The results show that the price elasticity and sales amount elasticity of the industrial heat demand are estimated to be −0.8476 and 1.0144, respectively, which are statistically significant at the 1% level. Furthermore, the economic benefits of industrial heat consumption are computed to be 1.59 times as great as the price of heat. The results of this study can be utilized in policy planning, making, and evaluation.

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A New Evaluation Method of Available Transfer Capability of Tie Lines between Control Areas Considering Power Supply Reliability Margins

IEEJ Transactions on Power and Energy ◽

10.1541/ieejpes.129.41 ◽

2009 ◽

Vol 129 (1) ◽

pp. 41-48

Author(s):

Ko Sekita ◽

Akihiko Yokoyama

Keyword(s):

Power Supply ◽

Evaluation Method ◽

Available Transfer Capability ◽

Transfer Capability ◽

Tie Lines ◽

Supply Reliability

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Adjusting Electricity Cost Depending on Power Supply Outages

Elektrotekhnologii i elektrooborudovanie v APK ◽

10.22314/2658-4859-2020-67-2-44-50 ◽

2020 ◽

Vol 67 (2) ◽

pp. 44-50

Author(s):

Vadim E. Bolshev ◽

Aleksandr V. Vinogradov ◽

Alina V. Vinogradova ◽

Aleksey V. Bukreev ◽

Aleksandr A. Lansberg

Keyword(s):

Power Quality ◽

Power Supply ◽

Power Supply System ◽

Economic Incentive ◽

Supply System ◽

Research Purpose ◽

Electricity Cost ◽

Economic Method ◽

Urgent Task ◽

Supply Reliability

During the functioning of power supply system, there can be situations where the culprit in interruptions of power supply to consumers and a power quality violation is a power supply company or a consumer himself. Therefore, the economic incentive for power supply companies and consumers to increase power supply reliability and power quality is an urgent task. To implement such incentives, it is necessary to control the facts and time of power supply outages and their values as well as cases and time of non-compliance of power quality with the requirements of standards. It is possible with the use of a monitoring system for power supply reliability and power quality. (Research purpose) The research purpose is in developing a technical and economic method for stimulating power supply companies and consumers to increase efficiency of power supply system. (Materials and methods) The article provides a review of the structural diagram of a system for monitoring power supply reliability and power quality including devices for monitoring the number and duration of power outages and voltage deviations. (Results and discussion). An economic method has been developed to stimulate power supply companies and consumers to increase power supply system efficiency. The essence of the method is to control the parameters of power supply reliability and power quality, identify the violation of these parameters, determine the culprit of the violation, determine the time characteristics of the violation, summarize the duration of violations for the reporting period, compare the actual amount of duration with the allowable one, determine the amount of compensation for the violation and impose sanctions on payment compensation by the perpetrators of violations of these parameters. The article presents an algorithm for adjusting the cost of electricity supplied to consumers depending on the number and duration of voltage deviations and the number and duration of outages. The algorithm serves to ensure the operation of the specified technical and economic method. (Conclusions) The algorithm works in conjunction with a system for monitoring power supply reliability and power quality based on signals from devices that control the number and duration of outages and voltage deviations.

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Introduction and Spread of the Invasive Alien Species Ageratina altissima in a Disturbed Forest Ecosystem

Sustainability ◽

10.3390/su13116152 ◽

2021 ◽

Vol 13 (11) ◽

pp. 6152

Author(s):

Eunyoung Kim ◽

Jaeyong Choi ◽

Wonkyong Song

Keyword(s):

Land Use ◽

South Korea ◽

Alien Species ◽

Invasive Alien Species ◽

Management Policy ◽

Economic Damage ◽

Forest Edges ◽

Forest Interior ◽

Lower Elevation ◽

Canopy Area

Invasive alien species (IAS) not only displace nearby indigenous plants and lead to habitat simplification but also cause severe economic damage by invading arable lands. IAS invasion processes involve external forces such as species characteristics, IAS assemblage traits, environmental conditions, and inter-species interactions. In this study, we analyzed the invasion processes associated with the introduction and spread of Ageratina altissima, a representative invasive plant species in South Korea. We investigated 197 vegetation quadrats (2 × 20 m) in regions bordering 47 forests in southern Seoul and Gyeonggi-do, South Korea. A total of 23 environmental variables were considered, which encompassed vegetation, topography, land use, and landscape ecology indices. The model was divided into an edge and an interior model and analyzed using logistic regression and a decision tree (DT) model. The occurrence of Ageratina altissima was confirmed in 61 sites out of a total of 197. According to our analysis, Ageratina altissima easily invaded forest edges with low density. The likelihood of its occurrence increased with lower elevation and gentler slope. In contrast, the spread of Ageratina altissima in the forest interior, especially based on seed spread and permeability, was favored by a lower elevation and gentler slopes. The analysis of Ageratina altissima settlement processes in forest edges coupled with the DT model demonstrated that land characteristics, such as the proximity to urbanized areas and the number of shrub and tree species, play a pivotal role in IAS settlement. In the forest interior, Ageratina altissima did not occur in 68 of the 71 sites where the soil drainage was under 2.5%, and it was confirmed that the tree canopy area had a significant impact on forest spread. Based on these results, it can be assumed that Ageratina altissima has spread in South Korean forests in much the same way as other naturalized species. Therefore, vegetation management strategies for naturalized species should be developed in parallel with land use management policy in regions surrounding forest edges to successfully manage and control Ageratina altissima invasion.

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