• Journal of Environmental Policy
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• v.11 no.4
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• pp.107-130
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• 2012

Economic analysis of climate change in the Korean peninsula has been conducted in the four major river basins. Although climate change impacts can vary in many terms, typically flood damages from the increase of precipitation and drought from rainless, this research only focused on effects of altering precipitation due to the lack of information and depth-damage functional form in Korea. This research also considered a gamma function of 5 % failure to deal with uncertainty issues in water resources. For the detailed analysis, time different discount rates have been used for short, mid, and long period, viz., 2.76%, 1.45%, and 0.62%, respectively. Over all effects of climate change on four major riverbasins can be summarized as no short period damage except the Han river basin. In the Han river basin, rapid increases of residential water use lead short term water shortage.