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Coal Phase-Out as a Driver of Regional Disparities:Using the Spatial Computable General Equilibrium (SCGE) Model

Koo Hyeongsu 1 Kim, Euijune 2 Seulki Kim 2

1국토연구원
2서울대학교

Accredited

ABSTRACT

Due to the coal phase-out policy, specific regions may experience significant impacts on their industrial bases, leading to various socio-economic damages such as population decline, reduced consumption, and fiscal deterioration. Moreover, these shocks can propagate to other regions, widening disparities at the national level. This study analyzes the indirect damage experienced by other regions when a specific region incurs direct impacts from the coal phase-out policy and examines the resulting changes in regional disparities. Our findings indicate that the implementation of the coal phase-out policy exacerbates regional disparities. Notably, the damage experienced in regions with population decline is more severe than in other regions, confirming the presence of a double gap effect. Inter-regional disparities are identified as a key factor, suggesting that in South Korea, where economic activities take place at the metropolitan level, the economic impacts on a specific region can escalate into broader issues affecting the entire metropolitan area.

Citation status

* References for papers published after 2023 are currently being built.