OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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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.

 

Korea's Green Growth Strategy

Mitigating Climate Change and Developing New Growth Engines You or your institution have access to this content

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Author(s):
Randall S. Jones1, Byungseo Yoo1
Author Affiliations
  • 1: OECD, France

Publication Date
29 Aug 2011
Bibliographic information
No.:
798
Pages
32
DOI
10.1787/5kmbhk4gh1ns-en

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Korea’s greenhouse gas emissions almost doubled between 1990 and 2005, the highest growth rate in the OECD area. Korea recently set a target of reducing emissions by 30% by 2020 relative to a "business as usual" baseline, implying a 4% cut from the 2005 level. Achieving this objective in a cost-effective manner requires moving from a strategy based on voluntary commitments by firms to market-based instruments. The priority is to establish a comprehensive cap-and-trade scheme, supplemented, if necessary, by carbon taxes in areas not covered by trading. Achieving a significant cut in emissions requires a shift from energy-intensive industries to low-carbon ones. Korea is strongly committed to promoting green growth through its Five-Year Plan, which envisages spending 2% of GDP per year through 2013. One challenge is to ensure that these expenditures are efficiently targeted so as to develop green technologies, while avoiding the risks inherent in industrial policy.
Keywords:
energy efficiency, green certificates, green growth, carbon tax, environmental taxes, Kyoto protocol, emissions trading system, renewable energy, R&D, energy subsidies, greenhouse gas emissions, Clean Development Mechanism, Korean economy, climate change, National Strategy for Green Growth
JEL Classification:
  • Q: Agricultural and Natural Resource Economics; Environmental and Ecological Economics
  • 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; 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