The role of the four electric power sectors in the Korean national economy: an input–output analysis

Abstract

The electric power industry has played an important role in the dramatic economic development in Korea, and electricity has become a critical factor sustaining the well-being of the Korean people. This study uses input–output analysis to investigate the role of the four electric power sectors (hydroelectric, fossil-fuels, nuclear and non-utility) in the Korean national economy for the period 1985–1998, focusing on three topics: the impact of electricity supply investment on individual sectors and the inter-industry linkage effect; the electricity supply shortage effect; and the impact of the rise in electricity rates on prices of other products. The overall results reveal that the non-utility electric sector is superior in terms of national economy-wide effects to the other three sectors throughout the period. Finally, potential uses of the results are illustrated from the perspective of policy instruments and some policy implications are discussed.