Abstract

This study sought to investigate the economic effects of a biodiesel sector. To achieve this goal, this study applied an input-output (IO) analysis to evaluate the economic effects of biodiesel and diesel sectors using the 2018 IO table published by the Bank of Korea in 2020. As a result of IO analysis for a biodiesel mixing ratio of 3% (750 thousand k1), biodiesel showed a higher production-inducing effect, value-added creation effect, and employment-inducing effect over diesel. In comparisons between biodiesel scenarios, with the exception of the import-inducing effect, the higher the proportion of domestic raw materials, the higher the production, value-added, and employment inducing effects were.

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