Classifying Regional and Industrial Characteristics of GHG Emissions in South Korea

Abstract

South Korea officially committed to reducing 40% of its total carbon emissions by 2030, but the country has a carbon-dependent economic structure based on the manufacturing industry. Additionally, the industrial structure of each region in South Korea is heterogeneous. In this regard, policymakers should analyze the carbon emission condition at a regional level because abatement aspects are heterogeneous by urban spatial production. However, although various studies have developed a methodology to evaluate the GHG emission condition, these studies failed to consider the fundamental aspect of regional heterogeneity. In this regard, this study suggests a quantitative method to assess the potential of the carbon neutrality of regions and industries by using both shift-share analysis and the Log Mean Divisia Index method. Shift share analysis is used to quantify the relation between the industry and regional characteristics, and the Log Mean Divisia Index method can decompose each effect for economic growth and technological progress. By combining these two methods, this study suggests four classifications to evaluate regional and industrial characteristics of GHG emissions and analyze each region’s emission status in terms of the mining and manufacturing industry in South Korea.