Induced Effects of Environmentally Friendly Generations in Korea

Ji-Whan Kim,Yoon-Kyung Kim

doi:10.3390/su13084404

Ji-Whan Kim, Yoon-Kyung Kim

Open Access

https://doi.org/10.3390/su13084404

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Abstract

This study estimated the induced effects of LNG, mega PV (photovoltaic), small PV, onshore wind and offshore wind power, which will be used as major power sources under the Korea’s energy transition policy. The 2015 Input–Output Statistics of Bank of Korea were used to reflect Korea’s economic structure. The MCI (manufacture, construction and installation) and O&M (operation and maintenance) of each power source would have different effects, so in the analysis the MCI and O&M of each power source were distinguished. According to estimation results, the induced-effect coefficients of the MCI are greater than those of the O&M in every power source. The induced production effect coefficient of the MCI is decreased in the order of mega PV > small PV > LNG power > offshore wind > onshore wind. The induced production effect coefficient of the O&M is decreased in the order of mega PV > small PV > onshore wind > offshore wind > LNG thermal. The induced employment coefficient of the MCI is decreased in the order of LNG thermal > mega PV > small PV > onshore wind > offshore wind. PV power and wind power have bigger induced effects and bring economic effects in Korean economy. The carbon neutrality and energy transition policies implemented by Korea have a certain level of induced effects and offset the burden of transition costs even if existing power sources are replaced with environmentally friendly power sources.

Highlights

IntroductionPublisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations
The induced production effect coefficient of the O&M is decreased in the order of mega PV > small PV > onshore wind > offshore wind > LNG thermal
The carbon neutrality and energy transition policies implemented by Korea have a certain level of induced effects and offset the burden of transition costs even if existing power sources are replaced with environmentally friendly power sources

Summary

Introduction

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. Since the early 2010s, EU nations such as Germany, the UK, France, etc. Japan have implemented policies to shift fossil fuel energy-based energy systems to renewable energy-based energy systems to cope with climate change. In the past few decades, only a few countries have pushed for a national energy transition, which has been slow. The energy transition policy has expanded to many countries and is progressing rapidly [1]. According to IRENA’s Transforming Energy Scenario with Deep Decarbonization Perspective, energy transition realizes a sustainable low-carbon society, increases employment, further promotes economic growth and cleanses living conditions [2]

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