IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v61y2013icp1551-1555.html
   My bibliography  Save this article

The impact of electricity price changes on industrial prices and the general price level in Korea

Author

Listed:
  • Lim, Seul-Ye
  • Yoo, Seung-Hoon

Abstract

Electricity has played an important role in the economic development of Korea and, thus, has become a critical factor in sustaining the well-being of the Korean people. This study attempts to investigate the impact of electricity price changes on industrial prices and the general price level using input–output (I–O) analysis. To this end, we apply the I–O price model to the 2011 I–O table recently produced by the Bank of Korea, paying particular attention to the electricity sector by considering it as exogenous and then investigating its impacts. The impacts of the electricity price changes on each industrial sector's prices and the general price level are quantitatively derived. For example, the overall impact of a 10% increase in electricity price on the Korean national economy is estimated to be 0.4367%. We also report the results from the model with the electricity sector endogenous and the model with endogenous electricity and labor sectors. This information can be usefully utilized in decision-making regarding price management for electricity.

Suggested Citation

  • Lim, Seul-Ye & Yoo, Seung-Hoon, 2013. "The impact of electricity price changes on industrial prices and the general price level in Korea," Energy Policy, Elsevier, vol. 61(C), pages 1551-1555.
    • Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:1551-1555
    DOI: 10.1016/j.enpol.2013.06.129
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513006368
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.06.129?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Leon N. Moses, 1974. "Outputs And Prices In Interindustry Models," Papers in Regional Science, Wiley Blackwell, vol. 32(1), pages 7-18, January.
    2. Wu, Rong-Hwa & Chen, Chia-Yon, 1990. "On the application of input-output analysis to energy issues," Energy Economics, Elsevier, vol. 12(1), pages 71-76, January.
    3. Han, Sang-Yong & Yoo, Seung-Hoon & Kwak, Seung-Jun, 2004. "The role of the four electric power sectors in the Korean national economy: an input-output analysis," Energy Policy, Elsevier, vol. 32(13), pages 1531-1543, September.
    4. Wassily Leontief, 1946. "Wages, Profit and Prices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 61(1), pages 26-39.
    5. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Ju-Hee & Yoo, Seung-Hoon, 2021. "Comparison of the economic effects of nuclear power and renewable energy deployment in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    2. Yang Xu & Jiahua Hu & Yizheng Wang & Weiwei Zhang & Wei Wu, 2022. "Understanding the Economic Responses to China’s Electricity Price-Cutting Policy: Evidence from Zhejiang Province," Sustainability, MDPI, vol. 14(18), pages 1-24, September.
    3. Ai, Hongshan & Xiong, Shiya & Li, Ke & Jia, Pinrong, 2020. "Electricity price and industrial green productivity: Does the “low-electricity price trap” exist?," Energy, Elsevier, vol. 207(C).
    4. Wang, Di & Zhang, Zhiyuan & Yang, Xiaodi & Zhang, Yanfang & Li, Yuman & Zhao, Yueying, 2021. "Multi-scenario simulation on the impact of China's electricity bidding policy based on complex networks model," Energy Policy, Elsevier, vol. 158(C).
    5. Hao Xiao & Shuquan Li & Julien Chevallier & Bangzhu Zhu, 2017. "Electricity-Savings Pressure and Electricity-Savings Potential among China?s Inter-Provincial Manufacturing Sectors," Working Papers 2017-006, Department of Research, Ipag Business School.
    6. Meng, F.Y. & Zhou, D.Q. & Zhou, P. & Bai, Y., 2014. "Sectoral comparison of electricity-saving potentials in China: An analysis based on provincial input–output tables," Energy, Elsevier, vol. 72(C), pages 772-782.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sharify, Nooraddin & Sancho, Ferran, 2011. "A new approach for the input-output price model," Economic Modelling, Elsevier, vol. 28(1-2), pages 188-195, January.
    2. Liu, Hong-Tao & Guo, Ju-E & Qian, Dong & Xi, You-Min, 2009. "Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input-output analysis," Energy Policy, Elsevier, vol. 37(8), pages 3194-3204, August.
    3. Kim, Ju-Hee & Yoo, Seung-Hoon, 2021. "Comparison of the economic effects of nuclear power and renewable energy deployment in South Korea," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    4. J. Clark & Robert Lawson & Alex Nowrasteh & Benjamin Powell & Ryan Murphy, 2015. "Does immigration impact institutions?," Public Choice, Springer, vol. 163(3), pages 321-335, June.
    5. Muhammad Shafiullah & Ravinthirakumaran Navaratnam, 2016. "Do Bangladesh and Sri Lanka Enjoy Export-Led Growth? A Comparison of Two Small South Asian Economies," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 114-132, March.
    6. Jan Fagerberg & Martin Srholec, 2017. "Global Dynamics, Capabilities and the Crisis," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 83-106, Springer.
    7. Maria Iacovou, 2013. "The relationship between incomes and living arrangements: variation between countries, over the life course, and over time," ImPRovE Working Papers 13/15, Herman Deleeck Centre for Social Policy, University of Antwerp.
    8. Juan Antonio Duro & Jordi Teixidó-Figueras & Emilio Padilla, 2017. "The Causal Factors of International Inequality in $$\hbox {CO}_{2}$$ CO 2 Emissions Per Capita: A Regression-Based Inequality Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 683-700, August.
    9. Marijke Verpoorten, 2014. "Growth, poverty and inequality in Rwanda: a broad perspective," Working Papers of LICOS - Centre for Institutions and Economic Performance 490896, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    10. Rute M. Caeiro & Pedro C. Vicente, 2020. "Knowledge of vitamin A deficiency and crop adoption: Evidence from a field experiment in Mozambique," Agricultural Economics, International Association of Agricultural Economists, vol. 51(2), pages 175-190, March.
    11. Alice N. Sindzingre, 2015. "Whatever Inconsistencies and Effects? Explaining the Resilience of the Policy Reforms Applied to Developing Countries," Forum for Social Economics, Taylor & Francis Journals, vol. 44(2), pages 159-178, August.
    12. Tanu M Goyal & Arpita Mukherjee, 2017. "Trade Agreements and Services Value Chain: The Case of India and Thailand," Applied Finance and Accounting, Redfame publishing, vol. 3(1), pages 11-23, February.
    13. Burhan, Nik Ahmad Sufian & Mohamad, Mohd Rosli & Kurniawan, Yohan & Sidek, Abdul Halim, 2014. "National Intelligence, Basic Human Needs, and Their Effect on Economic Growth," MPRA Paper 77267, University Library of Munich, Germany.
    14. Sam R. Bell & K. Chad Clay & Amanda Murdie, 2019. "Join the Chorus, Avoid the Spotlight: The Effect of Neighborhood and Social Dynamics on Human Rights Organization Shaming," Journal of Conflict Resolution, Peace Science Society (International), vol. 63(1), pages 167-193, January.
    15. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    16. Üngör, Murat, 2014. "Some thought experiments on the changes in labor supply in Turkey," Economic Modelling, Elsevier, vol. 39(C), pages 265-272.
    17. James Thurlow & Giacomo Branca & Erika Felix & Irini Maltsoglou & Luis E. Rincón, 2016. "Producing Biofuels in Low-Income Countries: An Integrated Environmental and Economic Assessment for Tanzania," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(2), pages 153-171, June.
    18. Isis Gaddis & Stephan Klasen, 2014. "Economic development, structural change, and women’s labor force participation:," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 639-681, July.
    19. Berthold, Norbert & Gründler, Klaus, 2014. "Wie entsteht Stagflation?," Discussion Paper Series 126, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    20. Altaf Hussain & Ambar Khalil & Maryam Nawaz, 2013. "Macroeconomic Determinants Of Non-Performing Loans (Npl): Evidence From Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 59-72, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:1551-1555. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.