RT Book, Section
A1 OECD
T1 Achieving the "low carbon, green growth" vision in Korea
JF OECD Economic Surveys: Korea
YR 2012
FD Apr 26
VO 2012
IS 10
SP 87
OP 110
AB 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.
PB Organisation for Economic Co-operation and Development
DO 10.1787/eco_surveys-kor-2012-5-en
UL http://www.oecd-ilibrary.org/;jsessionid=1uomf6sz82hiz.x-oecd-live-02content/chapter/eco_surveys-kor-2012-5-en