Impact Analysis of Introducing Emissions Trading Scheme in Korea by Manufacturing Sector (탄소배출규제에 따른 업종별 산업경쟁력 분석과 보완방안)

Sunhwa Lee (이선화); Sanghyun Hwang (황상현); Youn Seol (설윤)

Impact Analysis of Introducing Emissions Trading Scheme in Korea by Manufacturing Sector

Journal of Regulation Studies
2014, 23(1), pp.163-186
Publisher : 한국규제학회
Research Area : Social Science > Public Administration

Sunhwa Lee ¹, Sanghyun Hwang ², Youn Seol ³

¹한국지방세연구원
²한국경제연구원
³경북대학교

Accredited

ABSTRACT

This paper estimates the sales effects from implementation of emissions trading scheme on the Korean manufacturing sector. Under no free allocation scenario, sales reduction ranges between 0.75% and 2.64%, which amounts to KRW 8.4~29.6 trillion. Cement and iron & steel industries may suffer more than 5% decline in sales even under the most modest scenario. By taking account of the nature of emission and sales effects by sector, complementary measures are suggested to minimize the weakening of industrial competitiveness and carbon leakage. The most common measure is to allow a certain ratio of free allocation to the sectors significantly exposed to carbon leakage. Comparison of legislations and bills in the EU, Australia, and the U.S. is made to consider detailed factors regarding the selection of industry at risk of carbon leakage, which leads to coming up with the way best suited to Korea.

KEYWORDS

Emission Trading Scheme, carbon leakage, industrial competitiveness, greenhouse gas regulation

Citation status

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

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Journal of Regulation Studies 2023 KCI Impact Factor : 0.78