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http://dx.doi.org/10.3741/JKWRA.2012.45.12.1201

The Economic Impacts of Subsidizing Water Industry Under Greenhouse Gases Mitigation Policy in Korea: A CGE Modeling Approach  

Kim, Jae Joon (Department of Economics., University of Seoul)
Park, Sung Je (Future Resources Institute)
Publication Information
Journal of Korea Water Resources Association / v.45, no.12, 2012 , pp. 1201-1211 More about this Journal
Abstract
This paper constructed the single country sequential dynamic CGE model to analyze the economic impacts of subsidizing water industry under the GHG emission abatement policy in Korea. We introduced the carbon tax to reduce the GHG emission and made two scenarios. One is to transfer the total tax revenue to household. The other is to mix the tax transfer and water industry support. Our Simulation results show that the macroeconomic effects might be positive by subsidizing water industry compared with the pure tax transfer. However, the support of water industry doesn't contribute to head for the non-energy intensive economy because it's economic activity highly depend on fossil energy and energy intensive products as intermediate demand. This means that it is important to make efforts on the cost effective measures such as energy technology progress, alternative energy development, and energy efficiency improvement in water industry against climate change policy.
Keywords
CGE model; water industry; GHG emission; scenario; carbon tax;
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Times Cited By KSCI : 1  (Citation Analysis)
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