Effects of Carbon Emission Trading System on the 
Economic Value of Wood Pellet Boiler

doi:10.12972/ksmer.2014.51.3.358

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2014 Vol.51, Issue 3 Preview Page Next Page

Research Paper

Effects of Carbon Emission Trading System on the Economic Value of Wood Pellet Boiler 탄소 배출권 거래제도 도입이 우드펠릿 보일러의 경제성에 미치는 영향: 윤정선·이종협·최정현
Jeongsun Yun, Jonghyup Lee, Jung Hyun Choi

30 June 2014. pp. 358-365

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Abstract

This paper investigates the cost-effectiveness of the wood pellet fuel relative to fossil fuels such as Liquefied Natural Gas (LNG) under carbon emission trading system which is scheduled to be effective in Korea in 2015. Without carbon emission trading system, the high cost of initial investment needed for the wood pellet boiler hampers its cost-effectiveness relative to LNG. Since, however, the wood pellet is carbon-neutral, the introduction carbon emission trading system generates additional cash flows from selling CER in the market. The comparison of the net present values reveals that the economic feasibility of the wood pellet is greater than that of LNG if CER can be traded in the market. The results remain robust under the sensitivity analyses with respect to various price estimates of CER and social discount rates. Our results suggest that the introduction of the emission trading system should provide corporations with incentives to invest in the eco-friendly wood pellet fuel.

Keywords

Carbon emission trading system

Cost-Effectiveness

Wood pellet

LNG

본 연구는 2015년 도입이 예정된 탄소배출권 거래제도 하에서 LNG 보일러와 우드펠릿 보일러의 경제성을 비교분석하였다. 분석을 위하여 우드펠릿 보일러 사용에 따라 발생하는 탄소배출권 판매수익을 추정하여 추가적인 현금흐름으로 분류한 이후 두 보일러의 순현재가치를 계산하여 이를 비교하였다. 분석 결과 탄소배출권이 정부가 추산한 바와 같이 톤당 12,000원에 거래된다는 전제 하에서 우드펠릿이 LNG 보일러에 비하여 경제성이 더 높은 것으로 나타났다. 그 동안 우드펠릿 보일러는 낮은 운용비용과 친환경성에도 불구하고 초기투자비용이 높아 보조금 지급 등 정부의 지원을 통해서만 경제성을 확보할 수 있었다. 본 논문의 분석결과는 정부의 지원에 의존하던 신재생에너지 활성화 정책이 탄소배출권 거래제도가 도입됨에 따라 기업이 자발적으로 참여할 수 있는 시장친화적인 정책으로 전환될 수 있음을 시사한다.

키워드

탄소배출권 거래제도

경제성 분석

우드펠릿

LNG

References

Chang, Y., 2011, “A study on estimation method for greenhouse gas emission from vehicles considering statistical distribution,” Master Thesis, University of Seoul, p. 23.
Chau, J., Sowlati, T., Sokhansanj, S., Preto, F., Melin, S. and Bi, X., 2009, “Techno-economic analysis of wood biomass boilers for the greenhouse industry,” Applied Energy, Vol. 86 pp. 364-371.
IPCC, 2007, Fourth Assessment Report: Climate Change (AR4).
Johansson, L.S., Leckner, B., Gustavsson, L., Cooper, D., Tullin, C. and Potter, A., 2004, “Emission characteristics of modern and old-type residential boilers fired with wood logs and wood pellets,” Atmospheric Environment, Vol. 38, No. 25, pp. 4183-4195.
Kim, J. and Yoo, T.H., 2012, “A critical review on the greenhouse gas emission trading schemes,” Trends and Prospects, Vol. 85, pp. 330-357.
Kim, M., 2012, “Forecasting market share of green boiler technology,” Master Thesis, Chonnam University.
Kim, Y. and Kim, S., 2008, “A review of current renewable power promotion policy and suggestion for improvement,” J. of the Korean Economy, Vol. 20, No. 3, pp. 107-133.
Korea Energy Management Corporation(KEMCO), 2009, “Good practice guideline for calculating greenhouse gas emission,” pp. 20-28.
Kwon, O.S., 2007, Environmental Economics, 2^nd Edition, Pakyoungsa, Seoul, pp. 327-335.
Lee, J., 2009, “A study on the energy utilization of woody biomass,” Gyeonggi Research Institute, p. 133.
Ministry of Environment(MOE), 2012, “A guide for ｢Greenhouse Gas and Energy Target Management System in Public Sectors｣”.
Shin, H., Kim, J. and Kim, J., 2013, “Feasibility study on the recovery for valuable minerals in beach sand,” J. of the Korean Society of Mineral and Energy Resources Engineers, Vol. 50, No. 4, pp. 534-542.
Song, J. and Choi, Y., 2012, “Assessment of rootfop photovoltaic potential in the Pukyong National University for establishing a green campus,” J. of the Korean Society for Geosystem Engineering, Vol. 49, No. 3, pp. 369-378.
Wee, D. and Choi, J., 2013, “Analysis of energy cost savings by an eco-friendly building in a university campus,” J. of the Korean Society of Mineral and Energy Resources Engineers, Vol. 50 No. 2, pp. 195-203.

Information

Publisher :The Korean Society of Mineral and Energy Resources Engineers
Publisher(Ko) :한국자원공학회
Journal Title :Journal of the Korean Society of Mineral and Energy Resources Engineers
Journal Title(Ko) :한국자원공학회지
Volume : 51
No :3
Pages :358-365
DOI :https://doi.org/10.12972/ksmer.2014.51.3.358

[1] Chang, Y., 2011, “A study on estimation method for greenhouse gas emission from vehicles considering statistical distribution,” Master Thesis, University of Seoul, p. 23.

[2] Chau, J., Sowlati, T., Sokhansanj, S., Preto, F., Melin, S. and Bi, X., 2009, “Techno-economic analysis of wood biomass boilers for the greenhouse industry,” Applied Energy, Vol. 86 pp. 364-371.

[3] IPCC, 2007, Fourth Assessment Report: Climate Change (AR4).

[4] Johansson, L.S., Leckner, B., Gustavsson, L., Cooper, D., Tullin, C. and Potter, A., 2004, “Emission characteristics of modern and old-type residential boilers fired with wood logs and wood pellets,” Atmospheric Environment, Vol. 38, No. 25, pp. 4183-4195.

[5] Kim, J. and Yoo, T.H., 2012, “A critical review on the greenhouse gas emission trading schemes,” Trends and Prospects, Vol. 85, pp. 330-357.

[6] Kim, M., 2012, “Forecasting market share of green boiler technology,” Master Thesis, Chonnam University.

[7] Kim, Y. and Kim, S., 2008, “A review of current renewable power promotion policy and suggestion for improvement,” J. of the Korean Economy, Vol. 20, No. 3, pp. 107-133.

[8] Korea Energy Management Corporation(KEMCO), 2009, “Good practice guideline for calculating greenhouse gas emission,” pp. 20-28.

[9] Kwon, O.S., 2007, Environmental Economics, 2^nd Edition, Pakyoungsa, Seoul, pp. 327-335.

[10] Lee, J., 2009, “A study on the energy utilization of woody biomass,” Gyeonggi Research Institute, p. 133.

[11] Ministry of Environment(MOE), 2012, “A guide for ｢Greenhouse Gas and Energy Target Management System in Public Sectors｣”.

[12] Shin, H., Kim, J. and Kim, J., 2013, “Feasibility study on the recovery for valuable minerals in beach sand,” J. of the Korean Society of Mineral and Energy Resources Engineers, Vol. 50, No. 4, pp. 534-542.

[13] Song, J. and Choi, Y., 2012, “Assessment of rootfop photovoltaic potential in the Pukyong National University for establishing a green campus,” J. of the Korean Society for Geosystem Engineering, Vol. 49, No. 3, pp. 369-378.

[14] Wee, D. and Choi, J., 2013, “Analysis of energy cost savings by an eco-friendly building in a university campus,” J. of the Korean Society of Mineral and Energy Resources Engineers, Vol. 50 No. 2, pp. 195-203.

Journal of the Korean Society of Mineral and Energy Resources Engineers ISSN:2288-0291(Print) 2288-2790(Online) 한국자원공학회지

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