• Environmental and Resource Economics Review
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• v.24 no.3
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• pp.573-605
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• 2015

This study proposed scenarios of tax reform regarding taxation on bituminous coal for power generation since July 2015 and July 2014, estimated its impact on SMP, settlement price, tax revenue from year 2015 to year 2029. These scenarios are compared with those of the standard scenario. To estimate them, the power system simulation was performed based on the government plan, such as demand supply program and the customized model to fit Korea's power system and operation. Imposing a tax on bituminous coal for power generation while maintaining tax neutrality reducing tax rate on LNG, the short-term SMP is lowered than the one of the standard scenario. Because the cost of nuclear power generation is still smaller than costs of other power generation, and the nuclear power generation rarely determines SMPs, the taxation impact on SMP is almost nonexistent. Thus it is difficult to slow down the electrification of energy consumption due to taxation of power plant bituminous coal in the short term, if SMP and settlement price is closely related. However, in the mid or long term, if the capacity of coal power plant is to be big enough, the taxation of power plant bituminous coal will increase SMP. Therefore, if the tax reform is made to impose on power plant bituminous coal in the short term, and if the tax rate on LNG is to be revised after implementing big enough new power plants using bituminous coal, the energy demand would be reduced by increasing electric charges through energy tax reform. Both imposing a tax on power plant bituminous coal and reducing tax rate on LNG increase settlement price, higher than the one of the standard scenario. In the mid or long term, the utilization of LNG complex power plants would be lower due to an expansion of generating plants, and thus, the tax rate on LNG would not affect on settlement price. Unlike to the impact on SMP, the taxation on nuclear power plants has increased settlement price due to the impact of settlement adjustment factor. The net impact of energy taxation will depend upon the level of offset between settlement price decrease by the expansion of energy supply and settlement price increase by imposing a tax on energy. Among taxable items, the tax on nuclear power plants will increase the most of additional tax revenue. Considering tax revenues in accordance with energy tax scenarios, the higher the tax rate on bituminous coal and nuclear power, the bigger the tax revenues.

• Korean System Dynamics Review
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• v.7 no.2
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• pp.149-170
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• 2006

In this paper, an energy-economy-environment dynamic simulation model was developed to using system dynamics methodology. It describes current energy-economy-environment systems and forecasts changes caused by levying of carbon tax. The model is composed of three modules: an energy module, an economic module and an environmental module. Variables are interrelated in each module, and three modules are linked by several linkage variables. Setting up the linkage variables is an important factor for the composition of the model. The simulation result shows a change of the national GDP, usage of energy, and $CO_2$ emissions under levying and reinvestment of carbon tax considering various scenarios for the charging cost.

• Nuclear Engineering and Technology
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• v.56 no.1
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• pp.180-188
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• 2024

This research examined consumption-based carbon emission reduction by nuclear energy consumption and environmental tax while considering the context of trade globalization in the highest five emitter nations from 1990 to 2020. This study used various empirical methodologies, including preliminary analysis to check the stationarity and cointegration, the CS-ARDL for long-run analysis, CCEMG, AMG for robustness, and the D-H causality test for short-term pairwise causation. The results indicated that nuclear energy consumption, environmental tax, and trade globalization help to mitigate consumption-based carbon emissions while economic growth and population density boost carbon emissions. Furthermore, the results also found two-way casual connection exists between nuclear energy consumption, population density, and consumption-based carbon emissions. Thus, the results emphasize the need for government policies that encourage nuclear energy and environmental tax as a strategy to reduce carbon emissions and achieve and maintain environmental development.

• Proceedings of the Korean Radioactive Waste Society Conference
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• 2019.05a
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• pp.25-26
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• 2019

• Environmental and Resource Economics Review
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• v.31 no.4
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• pp.531-559
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• 2022

It is necessary to study the need for introduction of nuclear energy tax in Korea to internalize the externality cost of nuclear power and to make more balanced taxation system considering LNG and coal power. This study adopts choice experiment method to estimate the willingness to pay (WTP) for possible new tax on nuclear power. The finding is that the tax on nuclear fuel is more preferable to other tax base with KRW2.19/kWh of WTP, compared to KRW1.46/kWh for nuclear waste. The WTP for using the tax revenue to facilitate economic activity is KRW6.39/kWh compared to KRW6.12/kWh of WTP for funding climate change investment. The finding suggests that the design of nuclear power taxation needs to focus more on the use of tax revenue than on the choice of tax base.

• Journal of Energy Engineering
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• v.26 no.4
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• pp.127-142
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• 2017

After individual consumption tax on bituminous coal has been imposed by Korean government after 2014 Jul, we analyse the influence of tax and conclude that the consumption of high calorie coal has been increased and that of low/middle calorie coal has been decreased. And also, the average calorie of coal consumption has been increased and the more fuel cost happens on account of the average calorie increase. Those effects have been caused by the current tax imposition system which does not reflect the bituminous coal trait. The motivation of oversea resource development and the effort of coal blending skill have been decreased because of the current tax policy. We suggest 2 ways of the tax policy improvement system[1. tax imposition system in proportion to 5,000kcal/kg, 2. 15 stages(1 stage : 200kcal/kg) segmentation tax imposition system equal to the tax/(5,000kcal/kg)] to increase the current tax amount, to prevent the coal consumption distortion and to remove the further fuel cost.

• Environmental and Resource Economics Review
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• v.17 no.3
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• pp.61-89
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• 2008

In this study, by extending the model proposed by Fullerton and Kim(2006), we explored the tax interdependency effect to examine the relationship between environmental tax and economic growth. The theoretical model shows that environmental tax cannot always stimulate economic growth if other taxes such as labor or income tax are distorted by environmental taxes. However, environmental tax can boost economic growth if cutting distortionary taxes offset the distortion of taxes, or improvement of abatement knowledge can sufficiently reduce the cost of production. An empirical analysis using 14 OECD countries shows a positive relationship between the increase of implicit energy tax rate and the increase of implicit income tax rate. Meanwhile, empirical analysis does not provide enough evidence to claim that the increase of implicit energy tax decreases implicit labor tax. We can presume that environmental tax policy in Europe did not necessarily mitigate the burden of labor tax.

• Environmental and Resource Economics Review
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• v.12 no.2
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• pp.275-298
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• 2003

This paper compares the economic effects of climate policy options in Korea. The impacts and implications of carbon and Btu tax schemes are analyzed using the META Net modeling system, which was developed at the Lawrence Livermore National Laboratory (LLNL). Findings indicate that carbon tax is more cost effective compared to Btu tax, but this does not necessarily mean the former is more desirable than the latter. Energy market stability and national energy security is equally important in choosing policy options. Moreover Btu tax is more effective in reducing energy consumption in general. It reduces not only carbon intensive energy sources, but non-fossil fuel like electricity. Korean economy consumes too much energy and energy efficiency is very low compared to other OECD countries. So the reduction of energy demand growth should be the first priority of the national energy policy in Korea.

• Environmental and Resource Economics Review
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• v.17 no.3
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• pp.1-29
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• 2008

The goal of this study is to analyze the effects of the second energy tax reform of the transportation sector in Korea. For this purpose, we estimated the elasticities of energy demand(for gasoline, diesel and LPG) by using the ARDL(Auto-Regressive Distributed Lag) Model during the period of 1997 and 2005. We have the empirical results that the demand for diesel would decrease as much as of 382 million barrel per year and the demand for LPG would increase as much as of 20 million barrel per year since 2007. The second energy tax reform would also result in the decrease of 27,346 ton of air pollutants and 0.96 million ton of carbon dioxide per year. This shows that the second energy tax reform would have achieved its own policy goals by reducing energy demand and improving the quality of environment.

• Journal of the Korea Organic Resources Recycling Association
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• v.23 no.2
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• pp.21-27
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• 2015

An introduction of landfill tax has been recently in issue in order to raise the financial resource for establishing waste resource-circulation society. The objectives of this study are to evaluate the plan of increasing energy recovery from waste at Incheon Metropolitan City, and to propose several points to be considered in terms of introducing the landfill tax. There are a lot of problems that impede energy recovery from waste at Incheon Metropolitan City, such as high-calorific waste from decrease of food waste to the municipal incineration plant, metals and batteries in the standard plastic garbage bag, etc. Alternative policies to solve these major problems have been drawn.