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Study on Reasonable Fiscal Management of the Air Transport
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December 31, 2016 Jechul KIM, Jinseo PARK, Garam SIM
Basic-RR-16-11.pdf

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Aviation industry has played a key role in improving the country’s image, because aviation industry is a global industry. Aviation industry is a global industry, and it is one of the standards, when we measure national power as an important industry of countries. Understanding of managing finance streams for setting the groundwork for continuous development of Aviation industry and drawing up measures to effective application plan of a nation’s purse are very important. The study will examine financial flow closely with making a division such as system of the compilation of a budget, using new budget. In this study, we analyzed propriety and rationality of air transport finance in balanced system for the development of Aviation industry with consideration for understanding development of changes of air transport finance and changing circumstance of the future aviation policy. Especially, we suggest reasonable management of financial resources through research on the actual condition & analysis of problem with placing emphasis on structural development, improvement of competitive power of aviation industry, and revitalization of local airport. It is supported by offering of aviation service in island area, and balancing of securing & utilizing financial resource of aviation safety. To do this, we have to understand different features between aviation industry and other industry. Also we suggest why it is important that we have to inspect aviation finance at this point in time. Then, we suggest financial flow and appropriate future direction. In addition, we check development cases of advanced countries in aviation field from a cosmopolitical perspective, seek a rational direction of managing finance for development of aviation industry.
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Development of Environment Index by Transport mode
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November 30, 2016 Sungwon LEE, Seokjoo LEE, Jieun OH
Basic-RR-16-16.pdf

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Energy efficiency of transportation modes can differ depending on socio-economic or infrastructure related conditions of a nation or city.
The main goal of this research is to develop an environmental index that objectively evaluates the sustainability of private vehicles and public transportation. According to the findings from our research, it has been estimated that the energy efficiency of public transportation compared to private vehicles is about 6 times higher in rural areas while the efficiency rate is an average of 18 times higher in the Seoul Metropolitan Area. Furthermore, intracity buses that operate within the downtown area of Seoul have an efficiency rate 37 times higher than that of private vehicles. This study also measured the energy efficiency of public transportation classified by peak hours and non-peak hours based on passenger occupancy. The time series data of the index developed in the study can not only portray previous environmental trends for various transport modes but also can be the yardstick for comparing long-term sustainability. Lastly, it can be utilized as reference data for scientific and analytical policy-making for environmentally sustainable transport systems.

In this research we also estimated mass transit promotion policy’s impacts econometrically using discrete choice modelling. Among the policy measures investigated, we found fuel pricing could be effective for TDM. Research also indicates a potential application in mass transit travel time related policy measures.
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A Fundamental Research on Public Perceptions on Ethics, Legal, and Social Acceptance of Autonomous Vehicles (AV)
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November 30, 2016 Kyouk KIM, Youngjun MOON, Jongduk LEE, Sun A CHO
Basic-RR-16-15.pdf

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The purpose of this study is to investigate public perceptions on ethical, legal and social acceptance related to the issues of autonomous vehicles and their operations.

SAE’s classification of autonomous vehicle varies from 0 to 5. The level 0 represents vehicles without automation vehicle function while the level 5 represents vehicles with full automation. While current stage of automotive industrial development varies from 1 to 5, public’s perceptions on autonomous vehicles are biased that the autonomous vehicles would solve all of the burdens of human driver. Furthermore, these misperception led car crashes mainly caused by misuse of automated vehicles or negligence of monitoring the system driving.

Also, some concerns are rising on ethical issues while the processing decision making algorithm when the vehicles are confronted with trolly dilemma situations. While no clear answers provided for resolving trolly dilemma, autonomous vehicles should be embedded with software how to behave in such situations.

To study public’s perception on overall autonomous vehicles themselves and preferences on transport services served by autonomous fleets such as buses and taxies, this study carried out the survey focused on general public, experts in automobile and transport related industries and vocational drivers.

The results showed that experts preferred using autonomous vehicle technologies and relevant transport services more than general public.
While vocational drivers showed less preferred using autonomous vehicle technologies than general public. Overall, respondents showed hypocritical perceptions on AVs. They showed higher expectations that the AV would reduce car accidents in general, while showed concerns on technological malfunction would exacerbate the fatality caused by vehicle crashes.

Furthermore, authors devised experiments to observe general public’s behaviors on ethical and philosophical issues regarding trolly dilemma.
The results showed that 75 to 80% of general publics made self-interested decisions on trolly dilemma scenarios that the respondents were assumed to be involved in the crash, while 17% of them made altruistic decisions. Also, when they confronted with the crash situation that they had to choose motor-bike riders with or without safety helmet, more respondents choose to crash into riders with safety helmet which raised another debating issues on adverse selection problem.

To improve preferences of general public on autonomous vehicles as well as managing conflicts that may arise from vocational drivers stem from their unfavorable preferences, this study suggested to devise detailed strategies for improving public awareness, managing conflicts, as well as providing consumer education.

To handel ethical issues arise in response to ethical decision making, this study suggested to form a deliberation groups called Social Acceptance Open Platform(SAOP) to discuss ethical issues relevant to autonomous vehicles with global players from industries, academia and public officials.

Furthermore, authors pinpointed legal issues that need to be revised or reformed in preparation for incorporating autonomous vehicles with various technical levels in Korean legal system.

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Logistics paradigm shift calls for collaborative governance in logistics policy
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November 30, 2016 Jee-Sun LEE, Seungju JEONG, Changsup LEE, Minseong SHIN
Basic-RR-16-12.pdf

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The logistics sector has experienced major changes as technology development, such as information and communication technology (ICT) introduced new types of business models and diversified customers’ needs. E-commerce is growing rapidly and customers demand more in logistics services, like prompt door-to-door delivery, on-demand delivery, and specialized transportation services. It has led to the integration and convergence between logistics and manufacturing, distribution, and other high-tech industries, while seeing huge changes in supply chains. Changes in the logistics paradigm are expected to accelerate due to technological advances, changes in social and economic structure, and emerging issues related to sustainable development, including environment, safety and security.

In this new wave of changes, the existing government logistics policy seems limited in term of effect. For this reason, this study sought a governance perspective and developed a model of logistics policy governance based on review of current status and comprehensive analysis of various aspects; participation, devolution, transparency, accountability, efficiency, and results.

From the viewpoint of collaborative governance, the improvement plan with three core strategies was derived based on participation, network health, efficiency, and effectiveness. A total of 12 projects and detailed implementation plans were presented for each of the three core development strategies.

In order to facilitate implementation of the proposed projects effectively, establishment of the tentative Logistics Policy Governance Development Initiative, long-term restructuring of the legal and institutional system linked with the proposed projects, and reorganizing current logistics-related departments into a single ministry should be examined more closely in the future.
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Introduction of an Ex-post PPP Evaluation Scheme for Railway PPP Projects
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November 30, 2016 Yeonkyu Kim, Jinsu Mun, Jihye Kang, Hun Kim
Basic-RR-16-10.pdf

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Korean government introduced a PPP scheme in the early 1990s as its budget could not cope with the ever increasing demand for infrastructure investment especially in transport sector. However, there was limited private participation in the PPP scheme due to uncertainty for the return for the investment from private investors’ point of view, which led to the introduction of the minimum revenue guarantee (MRG) scheme by Korean government in the late 1990s to promote active participation from private sector by guaranteeing a certain portion of revenue to the private investors.

Due to the introduction of the MRG scheme, there were quite a few railway PPP projects initiated in the early 2000s and most of them are now in their operational stages. However, there have been some problems with many railway PPP projects, mainly due to lower fare revenue than the expected one, which led to either payment of MRG subsidy by local or central government, or financial difficulty for the private investors. Many railway PPP projects ended up with restructuring PPP contracts or terminating them after long period of dispute between private investors and local or central government. One of main reasons for these problems in railway PPP projects is that there is no monitoring system for railway PPP projects that could be applied from design stage to operation stage for proper management of railway PPP projects by monitoring changing project environments and reflecting them in the existing contracts between private investors and government.

This study suggested a measure for the introduction of an ex-post PPP evaluation scheme for railway PPP projects. The suggested ex-post PPP evaluation scheme shall be applied from design stage to operation stage to monitor the existing PPP contracts. Evaluation period, evaluation measure, management measure and legalization measure were suggested and evaluation measure was applied to two existing railway PPP projects to demonstrate the applicability of the measure.

The suggested ex-post PPP evaluation scheme is expected to enable Korean government and private investors to take appropriate measures when there are substantial changes that could influence the condition of the existing contracts.
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Development of National highway efficiency index and it`s application operational strategy
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November 30, 2016 Jeongbok YU, Seunghoon CHEON, Jonghoon LEE, Jinwoo KIM
Basic-RR-16-09..pdf

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SOC investment is shrinking as the national budget for road construction in Korea is steadily declining. Thus, Nation's highway policy should shift from investments to operations. In other words, transportation planner and operator need to a new method which an advanced operation policy from evaluation efficiency index for decision making.

In this study, we have established an objective measure to assess the operational efficiency of the national highway network. It is currently operating in the National Highway Network, and provides a cost-effective and efficient way to utilize the national highway network.
The main purpose of this study is two things. One thing is that establishment of basic environment that allows us to monitoring and check the conditions of the national highway network. The other thing is that evaluating the efficiency of the national highway network by specific policy objectives of the Ministry of Land Transportation.

The results of the efficiency evaluation are used as basic data for the improvement strategy of national road network operation strategy.
Also, that is possible to enhance the continuous monitoring and evaluation method due to the establishment of the DB. It can be used as a basic index to meet the needs of the complicated administrators and users.

We are deeply grateful for the help of the experts and the professionals who have helped through the meetings, seminars, research cooperation, and relevant agencies.
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Evaluating the Implementation of Legal Transport Plans and Enhancing its Effectiveness
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November 30, 2016 Nakmoon SUNG, Changhwan MO, Jae-Joon LEE, Taeyoon PARK, Eun-su JUN
Basic-RR-16-08.pdf

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There are over 70 legal transport plans in Korea: Forty-one legal transport plans in the comprehensive transport area, three in the road transport area, nine in the railway transport area, nine in the aviation area and eight in the logistics area. The central government has fewer problems of legal transport plans than the local governments. Since many questions have been raised on the effectiveness of the local plans in Korea. this study focuses on ten legal transport plans of local governments. It finds out problems and provides improvement measures of the local plans in depth.

According to the result of questionnaire survey, many local governments do not formulate the legal transport plans. The formulation rate of Plans for Urban Traffic Improvement, Plans for National Traffic Safety, and Local Public Transportation Plan are over 80%, but those of Plans for Development of Sustainable Regional Transport Logistics, Plans for Improvement of Pedestrial Transport, and Plans for Road Construction and Management are below 30% or low. Not only formulation but also Implementation is critical for the effectiveness of the legal transport plans. However, just 45~57% of formulated plans have been implemented by the survey. The reasons that local government have not formulated and implemented the plans were lack of budget, uncertainties of effectiveness, overlapping and conflict between plans, and shortage of professional experts.

It is necessary to closely monitor the implementation progress of legal plans after formulation. As to the result of survey, about 50% of local governments follow up the situation of legal plans by team or department, but about 40% of local governments does not monitor performance of the formulated plans. The shortage of transport experts is suggested as a serious problem. Local governments of major cities have a diverse human resource and makes the use of transport specialists for formulating and implementing their legal plans, but many medium- and small-sized cities are lack of transport experts who can formulate and implement the legal plans.

To solve the problems, this study provides improvement measures with the analysis of questionnaire survey and interviews, that of foreign cases, and six times of expert consulting meetings. First, it is necessary that five legal transport plans are integrated into the Plans for Local Comprehensive Transport: Plans for Urban Traffic Improvement as the center of the Plans for Local Comprehensive Transport, Plans for Development of Sustainable Regional Transport Logistics, Plans for Improvement of Pedestrian Transport, Local Public Transportation Plan, and Plans to Improve Transportation Convenience of Mobility Disadvantaged Persons. This integration would increase the efficiency and effectiveness of the local plans. The formulation periods of the new integrated plan is 10-years, and the plan will be updated every 5 years.

There are some limitation to integrate Plans for National Traffic Safety and Plans for Road Construction and Management into the new Plans for Local Comprehensive Transport. The Plans for National Traffic Safety needs to build separately by transport modes and the Plans for Road Construction and Management has connection with upper road plans.

To increase the effectiveness of the local transport plans, this study suggests that a citizen participation system should be included in the plan formulation. It also proposes to strengthens the post evaluation system of the plans. To solve the lack of budget, it suggests a differentiating allocation method of government subsidies by the performance of the legal transport plans. It also proposes to set up ‘a Center for Urban Transport Plan’ to be responsible for assisting local governments and monitoring performance of the legal transport plans.
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Effects and Improvements on Highway Safety Projects in Korea
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November 30, 2016 LIM, Jae-kyung / SUL, Jaehoon / PARK, Jung-uk / SUNG, Nak Moon / CHOI, Jae-sik / HYUN, Jinwoo
Basic-RR-16-07.pdf

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This report suggests institutional improvement methods to evaluate cosmopolitical effects as methods of reducing traffic accidents of existing road transport safety projects in the Republic of Korea, analyze problems in conducting policies to reduce traffic accidents, and enhance positive effects of the given projects. To do this, the research focused on typical safety projects in road transport sectors concerning school zones, silver zones, improvement projects of traffic accident black spots, and diagnosis projects of road transport safety.

The Ministry of Strategy and Finances in the Republic of Korea categorized the road transport safety projects as the road transport safety project group from the national financial projects at the extensive evaluation and there are 11 projects for the facilitation improvement projects out of 17 the road transport safety project. Traffic accidents involving children in school zones were reduced 13.2% during the analysis period of 2012 to 2014 and an overall reduction of 4.6% with all users. The result of economic analysis from the three consecutive years was computed as 3.36 in benefit-cost analysis considering for all accidents in the school zones, and economic effects showed 5.31 and 9.38 respectively when the analysis period for traffic accidents involving all users was extended to five years and a decade, respectively. Traffic accidents in silver zones were reduced 42% after improvement projects were completed in those areas for all pedestrians.

Traffic accidents after conducting improvement projects in black spots showed 34.8% reductions in 2012, and results of the economic analysis in 2012 were calculated as 3.40 without Pain, Grief and Suffering (PGS) costs and 5.31 with PGS costs. In particular, economic impacts showed 9.27 from calculation of 3-year cumulative traffic accidents when PGS costs had been considered conducted by the Korea Transport Institute in 2012 compared to those conducted by the Korea Road Traffic Authority in 2013, 4.50.

Based on the results, legal and institutional improvement methods were stated, such as system wide construction of road transport sector safety projects, strengthening methods for maintenance and management, and construction of preventative methods.
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Street planning for pedestrian safety in Single-Detached Residential Units
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November 30, 2016 Sangjin HAN․ Haesun LEE․ Hyejin LEE

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This study aims at finding the planning consideration to reduce the pedestrian fatalities in Detached Housing Area, DHA. DHA is known as dangerous place to pedestrian in Korea. From 2011 to 2014, Roads less than 9 meter wide, are responsible for 53% of total pedestrian fatalities and they are usually installed in DHA. It indicates that improving pedestrian safety in DHA is important to reduce overall pedestrian fatality rate. It is known that the Screen Effect caused by street parking leads to road crashes between crossing pedestrians and running vehicles. Speeding is another cause of pedestrian accidents.
This situation is more serious in urban residential areas if they have restaurants, cafes and commercial shops.

The report first explains the development process of DHA in term of site planning, design and construction. The major problem is the development process which do not considerate safety of pedestrians sufficiently in the planning, design and operation phase of DHA. The paper presents four strategies designed to resolve the problem:
Pedestrian oriented street network; i.e. Pedestrian friendly street design, Parking lots sharing amongst residents, Maintenance of public space by representatives of residents. Pilot application of four development strategies in designing DHA in a new town shows that they can increase development costs a little but it can increase social benefit including less fatalities.
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Strategies for the implementation of city logistics public standard platform to improve parcel delivery service quality
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November 30, 2016 Sung Ho HUR․ Yeonjoo MIN․ Boo Sun CHOI․ Sebeom PARK
Basic-RR-16-05.pdf

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The parcel delivery industry has been grown rapidly with the expansion of single-person households and the increase of online shopping, and it is not too much to say that the parcel delivery service is now more important than the public postal service. However, it is true that the parcel delivery service has been regarded as a field that does not create enough added value because it is still far from providing customized and specialized services as it cannot escape from the traditional model that one company takes charge of all services from receiving to delivering.

In recent years, there have been changes in the parcel service industry that new companies such as unmanned mail box services or other fields’ companies such as motorcycle quick services are trying to link to parcel service to create various service models. These attempts seem to be an opportunity to solve the immediate problem of creating added value and increasing the level of service to the public in the parcel service industry, which has stagnated due to low price competition. However, despite the increasing efforts of the companies, there are not many cases in which inter-company service linking has been realized, that some reasons are that the initial investment cost for linking services is high and it is difficult to negotiate with existing parcel companies.

Therefore, in this study we suggest the concept of a public-led online city logistics platform that can serve as a standard information platform for parcel services, so that the parcel service related company can easily create an environment for new attempts. We also propose the concept of an offline collaborative platform which can be led by both public and private companies so that new business models using them can be tried in real environment.

In chapter 2, we analyzed the present situation of the parcel delivery market and presented the trend of the industry. In addition, we carried out a basic review of related laws and policies so that it can be utilized in policy proposals.

In chapter 3, we proposed an outlook for parcel services based on the current status of delivery services, examples of various delivery services, introduced cases of new technology related to delivery services, various opinions of experts in logistics delivery. And we found out difficulties and solutions to step forward to the future of parce delivery service industry

In chapter 4, as a way to create an environment of qualitative and quantitative growth of the parcel delivery industry by means of partial joint delivery services through the inter-industry convergence, we defined city logistics public standard platform and presented a plan for establishing the system based on industry’s needs

In chapter 5, from the standpoint of the government, we proposed a plan to implement the urban logistics joint platform step by step and to apply it to the market.
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