- 1815-1973 (online)
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
Achieving the “Low Carbon, Green Growth” Vision in Korea
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- Randall S. Jones, Byungseo Yoo1
- Author Affiliations
- 1: OECD, France
- 05 June 2012
- Bibliographic information
Korea, which has had the highest growth rate of greenhouse gas emissions in the OECD area since 1990, adopted an ambitious Green Growth Strategy in 2009. It aims at reducing emissions by 30% by 2020 relative to a “business as usual” scenario, implying a 4% cut from the 2005 level. The Strategy also includes a Five-Year Plan with public spending of 2% of GDP per year to promote green growth. Korea is planning to establish a carbon price through a cap-and-trade emissions trading scheme. Such an approach, combined with a carbon tax in sectors not covered by the scheme, is necessary to reduce emissions in a cost-effective manner and foster innovation in green technology. In addition, each sector should face the same electricity price based on production costs to promote efficient energy use. Given market failures, the government has a role to play in green R&D, particularly for basic research, in fostering green finance and in developing renewable energy resources.
- environmental taxes, greenhouse gas emissions, climate change, Five-Year Plan, carbon tax, green certificates, energy efficiency, energy subsidies, electricity pricing, renewable energy, Korea, National Strategy for Green Growth, Korean economy, R&D, emissions trading system, green growth
- JEL Classification:
- Q28: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Renewable Resources and Conservation / Government Policy
- Q48: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Energy / Government Policy
- Q54: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Environmental Economics / Climate ; Natural Disasters and Their Management ; Global Warming
- Q56: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Environmental Economics / Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth
- Q58: Agricultural and Natural Resource Economics ; Environmental and Ecological Economics / Environmental Economics / Government Policy