Induced Effects of Environmentally Friendly Generations in Korea

Ji-Whan Kim and Yoon-Kyung Kim
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Ji-Whan Kim: Northern Geoscience & Mineral Resources Strategy Center, Korea Institute of Geoscience and Mineral Resources, Daejeon 34132, Korea
Yoon-Kyung Kim: Department of Economics, Ewha Womans University, Seoul 03760, Korea

Sustainability, 2021, vol. 13, issue 8, 1-16

Abstract: This study estimated the induced effects of LNG, mega PV (photovoltaic), small PV, onshore wind and offshore wind power, which will be used as major power sources under the Korea’s energy transition policy. The 2015 Input–Output Statistics of Bank of Korea were used to reflect Korea’s economic structure. The MCI (manufacture, construction and installation) and O&M (operation and maintenance) of each power source would have different effects, so in the analysis the MCI and O&M of each power source were distinguished. According to estimation results, the induced-effect coefficients of the MCI are greater than those of the O&M in every power source. The induced production effect coefficient of the MCI is decreased in the order of mega PV > small PV > LNG power > offshore wind > onshore wind. The induced production effect coefficient of the O&M is decreased in the order of mega PV > small PV > onshore wind > offshore wind > LNG thermal. The induced employment coefficient of the MCI is decreased in the order of LNG thermal > mega PV > small PV > onshore wind > offshore wind. PV power and wind power have bigger induced effects and bring economic effects in Korean economy. The carbon neutrality and energy transition policies implemented by Korea have a certain level of induced effects and offset the burden of transition costs even if existing power sources are replaced with environmentally friendly power sources.

Keywords: induced effect; energy transition; renewable energy; Input–Output statistics (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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