Analysis of the positions of domestic and international countries’ emissions trading schemes through principal component and cluster analysis

Abstract

In an attempt to protect the earth in the era of climate change, effort has been put forth to restrict carbon emission globally. Although Korea is not one of the countries being obliged to reduce carbon emission specified in Kyoto Protocol, it has voluntarily implemented the emission trading scheme. In the midst of current situation ‘low carbon’, ‘green growth’ and paradigm are receiving global attention from the recent issue of climate change. This will provide a direction on understanding the emission trading of Korea in comparison with other developed countries, while determining the future direction of Korea’s emission trading. However, studies and data on domestic and international emission trading are currently lacking. Therefore for the purpose of understanding the nature of emission trading of Korea and corresponding guidelines, this paper analyzed the characteristics of domestic and international emission trading through principal component analysis and cluster analysis. The findings will be useful in identifying emission trading of other countries similar to the position of Korea. The significance of this study was to use the findings to provide reliable reference information for improving emission trading.