Economic Effects of Renewable Energy Expansion Policy: Computable General Equilibrium Analysis for Korea.

This study examines the effects of renewable energy expansion policy on the Korean economy and industries using the computable general equilibrium model, which divides the power generation sector into detailed generation technologies and sources. The scenarios are set to observe the cases where the share of solar photovoltaic and wind power generation reaches 7%. The effects are examined according to differing circumstances, such as when greenhouse gas (GHG) emissions are regulated, and the funding source for renewable expansion varies. The results show that renewable expansion policies have negative effects on GDP. However, the magnitude of the GDP decline becomes smaller when GHG emissions are regulated. The expansion of renewable energy induces the growth of upstream industries which supply components for renewable generation modules. Regarding employment, the renewable expansion policy can increase the demand for labor. However, the direction and the extent of the effect vary depending on the funding source. When overlapping regulations, such as the emission trading scheme and renewable energy expansion policies, exist in the power generation sector, the renewable energy expansion policy could provide incentives for GHG emission-intensive power sources.

The Role of Work-Family Balance Policy for Enhancing Social Sustainability: A Choice Experiment Analysis of Koreans in their Twenties and Thirties.

Korea is facing problems, such as inequality within society and an aging population, that places a burden on public health expenditure. The active adoption of policies that promote work-family balance (WFB), such as parental leave and workplace childcare centers, is known to help solve these problems. However, there has, as yet, been little quantitative evidence accumulated to support this notion. This study used the choice experiment methodology on 373 Koreans in their twenties and thirties, to estimate the level of utility derived from work-family balance policies. The results show that willingness to pay for parental leave was found to be valued at 7.81 million Korean won, while it was 4.83 million won for workplace childcare centers. In particular, WFB policies were found to benefit workers of lower socioeconomic status or belonging to disadvantaged groups, such as women, those with low education levels, and those with low incomes. Furthermore, the utility derived from WFB policies was found to be greater among those who desire children compared to those who do not. The results suggest that the proactive introduction of WFB policies will help solve problems such as inequality within society and population aging.

Impact and Interactions of Policies for Mitigation of Air Pollutants and Greenhouse Gas Emissions in Korea.

Korea faces a challenging task of simultaneously reducing emissions of air pollutants and greenhouse gases (GHG). Since both are emitted from the same sources such as fossil fuel combustion and economic activities, there could be commonalities and interactions between the policies for reducing each of them. A static computable general equilibrium model is developed to observe the economic impact of policies for reducing air pollutants or GHG and the interactions between those policies in Korea. The results show that reducing one of the air pollutants, particulate matter 2.5 (PM2.5) emissions by 30% from the business-as-usual (BAU) in 2022 will lead to reduction of GHG emissions by 22.8% below the BAU level, exceeding the national GHG reduction target. Also, by achieving the domestic GHG reduction target, which is 32.5% below the BAU level by 2030, PM2.5 emissions will be reduced by 32.8%. The costs of reducing air pollutants and greenhouse gas are high, reaching from 0.34% to 1.75% of gross domestic product, and the reduction causes an asymmetrical damage to emission intensive industries. The sum of the benefits from air pollutants and GHG reduction is estimated to be 0.4 to 1.2 times greater than the costs, depending on the scenario.