| Evaluating the economic impacts of Korea's NDC (nationally determined contributions) implementation via carbon pricing : A global multiregional computable general equilibrium analysis | |
| Evaluating the economic impacts of Korea's NDC (nationally determined contributions) implementation via carbon pricing : A global multiregional computable general equilibrium analysis | |
| Kim, Yong-Gun* ･ Moon, Jongwoo**† ･ Kim, Jaewan*** | |
| Kim, Yong-Gun* ･ Moon, Jongwoo**† ･ Kim, Jaewan*** | |
| In April 2023, the Korean government announced its national emission pathways to achieve its 2030 NDC target of reducing GHG emissions by 40% compared to the 2018-level. The study provides an overview of the economic impacts of achieving the NDC target on the Korean economy, and particularly, it considers the different circumstances of the global mitigation efforts. The study collects the countries’ NDC target information, applies a global dynamic recursive CGE model with GTAP 11 database, and establishes seven scenarios with different global mitigation efforts and the recycling of carbon revenues. Three types of international cooperation scenarios are Global Cooperation, Partial cooperation without Korea, and Unilateral Commitment by Korea. The utilization of carbon revenues is another dimension of the scenarios. The result indicates that all regions experience negative impacts on real GDP under the Global Cooperation scenario with lump-sum tax transfer approach. With the labor tax recycling, the losses in real GDP decrease, and some regions, including Korea, show some positive economic impacts. Particularly, Korea experiences substantial benefits from double dividend. Moreover, Korea experiences relatively favorable impacts of carbon pricing on real GDI. In addition, all scenarios indicate some decrease in real exports and imports in all regions, and the result suggests that carbon pricing would lead to significant negative impacts on production, particularly of fossil fuel sectors. We also conduct a sensitivity analysis on key parameters, such as the elasticities of substitution between energy and genuine input factors, as well as those between different sources of energies. | |
| Computable General Equilibrium, Nationally Determined Contribution, Economic Impacts, Carbon Revenue Recycling | |
 1403-04.pdf | |
| 2093-5919 | |
| 2586-2782 | |
| 2023-06 |
