Market Analysis during the First Year of Korea Emission Trading Scheme

Jaeseok Lee and Jongmin Yu
Additional contact information
Jaeseok Lee: Energy Institute, Seoul Energy Corporation, 20, Mokdongseo-ro, Yangcheon-gu, Seoul 07978, Korea
Jongmin Yu: Department of Economics, Hongik University 94, Wausan-ro, Mapogu, Seoul 121-791, Korea

Energies, 2017, vol. 10, issue 12, 1-13

Abstract: To derive the supply and demand issues during the first phase of the Korea Emission Trading Scheme (KETS), we investigated the excess or shortage, and the carry-over inflow of carbon emission permits for all of the domestic industries and major corporations. In particular, this study explored the supply and future prospects of offset credits, as well as the allocated permits, by forecasting the inflows of offset credits using the amount of certified reduction in domestic boundaries and overseas sources. We observed both the supply and demand of permits and changes in carbon dioxide (CO 2 ) emission levels during the first phase (2015–2017) by comparing the estimated emission levels and the total permit supply. The results showed that permits were either in surplus or insufficient, depending on the sub-sector, and that a surplus in the supply of permits would occur if companies do not carry over more than 70 million tons of permits to the next period.

Keywords: Korea Emissions Trading Scheme (KETS); offset credits; allocated allowances; supply-and-demand analysis (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/1996-1073/10/12/1974/pdf (application/pdf)
https://www.mdpi.com/1996-1073/10/12/1974/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:10:y:2017:i:12:p:1974-:d:120722

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().