IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v78y2017icp614-623.html
   My bibliography  Save this article

Examining the spatial patterns of green industries and the role of government policies in South Korea: Application of a panel regression model (2006–2012)

Author

Listed:
  • Park, Jeong-Il
  • Lee, Sugie

Abstract

Driven by global competition for economic growth, green industries and green jobs have become an important economic engine for sustainable and environmentally-friendly development. Most of the existing literature on green industries has focused on defining the green industry and its economic impacts. However, little empirical research has been conducted on the spatial patterns of green industries, such as their locational preferences. We examined the spatial patterns of green industries in South Korea over time and across municipal-level administrative units (si-gun-gu) using the Survey of Business Activities (2006–2012), which includes longitudinal, establishment-level employment data collected by the Korea National Statistical Office. We employed a panel data regression model to analyze green industries and their locational decisions. The spatial analysis showed that green industries tend to locate in areas where conventional manufacturing industries were previously concentrated. We also identified a new, emerging geographic cluster of green industries. The panel regression models indicated that some green industries, such as the advanced green city industry sector, tend to locate either within or near big cities. In contrast, the renewable energy industry sector tends to locate far from major cities. In addition, we confirmed that the 2009 “Framework Act on Low Carbon and Green Growth” law enacted by the Korean government had a significant impact on the growth of the green industry. However, the act's impact ceased after 2010, indicating the importance of both subsequent policy initiatives and the creation of a private market for green industries and green jobs.

Suggested Citation

  • Park, Jeong-Il & Lee, Sugie, 2017. "Examining the spatial patterns of green industries and the role of government policies in South Korea: Application of a panel regression model (2006–2012)," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 614-623.
  • Handle: RePEc:eee:rensus:v:78:y:2017:i:c:p:614-623
    DOI: 10.1016/j.rser.2017.04.061
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032117305695
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.rser.2017.04.061?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. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
    2. Roland-Holst, David, 2008. "Energy efficiency, innovation, and job creation in California," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7qz3b977, Department of Agricultural & Resource Economics, UC Berkeley.
    3. Gyu Hwan Kim & In Kwon Park, 2015. "Agglomeration economies in knowledge production over the industry life cycle: evidence from the ICT industry in the Seoul Capital Area, South Korea," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 19(3), pages 400-417, November.
    4. Carley, Sanya, 2009. "State renewable energy electricity policies: An empirical evaluation of effectiveness," Energy Policy, Elsevier, vol. 37(8), pages 3071-3081, August.
    5. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    6. Smith Jr. , Donald F. & Florida Richard, 1994. "Agglomeration and Industrial Location: An Econometric Analysis of Japanese-Affiliated Manufacturing Establishments in Automotive-Related Industries," Journal of Urban Economics, Elsevier, vol. 36(1), pages 23-41, July.
    7. Love, Lisa L. & Crompton, John L., 1999. "The Role of Quality of Life in Business (Re)Location Decisions," Journal of Business Research, Elsevier, vol. 44(3), pages 211-222, March.
    8. Josep-Maria Arauzo-Carod & Elisabet Viladecans-Marsal, 2009. "Industrial Location at the Intra-Metropolitan Level: The Role of Agglomeration Economies," Regional Studies, Taylor & Francis Journals, vol. 43(4), pages 545-558.
    9. Shapira, Philip & Gök, Abdullah & Klochikhin, Evgeny & Sensier, Marianne, 2014. "Probing “green” industry enterprises in the UK: A new identification approach," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 93-104.
    10. Yi, Hongtao, 2013. "Clean energy policies and green jobs: An evaluation of green jobs in U.S. metropolitan areas," Energy Policy, Elsevier, vol. 56(C), pages 644-652.
    11. Head, C. Keith & Ries, John C. & Swenson, Deborah L., 1999. "Attracting foreign manufacturing: Investment promotion and agglomeration," Regional Science and Urban Economics, Elsevier, vol. 29(2), pages 197-218, March.
    12. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    13. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    14. Li, Hongze & Guo, Sen & Cui, Liuyang & Yan, Jiaojiao & Liu, Jiaojiao & Wang, Bao, 2015. "Review of renewable energy industry in Beijing: Development status, obstacles and proposals," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 711-725.
    15. Yin, Haitao & Powers, Nicholas, 2010. "Do state renewable portfolio standards promote in-state renewable generation[glottal stop]," Energy Policy, Elsevier, vol. 38(2), pages 1140-1149, February.
    16. Yi, Hongtao, 2014. "Green businesses in a clean energy economy: Analyzing drivers of green business growth in U.S. states," Energy, Elsevier, vol. 68(C), pages 922-929.
    17. William M. Bowen & Sunjoo Park & Joel A. Elvery, 2013. "Empirical Estimates of the Influence of Renewable Energy Portfolio Standards on the Green Economies of States," Economic Development Quarterly, , vol. 27(4), pages 338-351, November.
    18. Yeon-Mi Jung, 2015. "Is South Korea’s Green Job Policy Sustainable?," Sustainability, MDPI, vol. 7(7), pages 1-20, July.
    19. Hillebrand, Bernhard & Buttermann, Hans Georg & Behringer, Jean Marc & Bleuel, Michaela, 2006. "The expansion of renewable energies and employment effects in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3484-3494, December.
    20. Mundaca, Luis & Luth Richter, Jessika, 2015. "Assessing ‘green energy economy’ stimulus packages: Evidence from the U.S. programs targeting renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1174-1186.
    21. Thomas H. Klier, 2006. "Where the Headquarters Are: Location Patterns of Large Public Companies, 1990-2000," Economic Development Quarterly, , vol. 20(2), pages 117-128, May.
    22. Wei, Max & Patadia, Shana & Kammen, Daniel M., 2010. "Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?," Energy Policy, Elsevier, vol. 38(2), pages 919-931, February.
    23. Furchtgott-Roth, Diana, 2012. "The elusive and expensive green job," Energy Economics, Elsevier, vol. 34(S1), pages 43-52.
    24. Karen Chapple & Cynthia Kroll & T. William Lester & Sergio Montero, 2011. "Innovation in the Green Economy: An Extension of the Regional Innovation System Model?," Economic Development Quarterly, , vol. 25(1), pages 5-25, February.
    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. Hendrik Hansmeier, 2021. "Geography of eco-innovations vis-à-vis geography of sustainability transitions: Two sides of the same coin?," GEIST - Geography of Innovation and Sustainability Transitions 2021(07), GEIST Working Paper Series.
    2. Cartelle Barros, Juan José & Lara Coira, Manuel & de la Cruz López, María Pilar & del Caño Gochi, Alfredo, 2017. "Comparative analysis of direct employment generated by renewable and non-renewable power plants," Energy, Elsevier, vol. 139(C), pages 542-554.
    3. Rafał Trzaska & Adam Sulich & Michał Organa & Jerzy Niemczyk & Bartosz Jasiński, 2021. "Digitalization Business Strategies in Energy Sector: Solving Problems with Uncertainty under Industry 4.0 Conditions," Energies, MDPI, vol. 14(23), pages 1-21, November.
    4. Lixia Chen & Jianyuan Huang, 2023. "Study on the Interaction Effect between the Intensity of Government Low-Carbon Subsidies and the Growth Ability of Green and Low-Carbon Emerging Enterprises," IJERPH, MDPI, vol. 20(3), pages 1-17, January.
    5. Daoyuan Chen & Guoen Wang & Ziwei Yuan & Ershen Zhang, 2023. "Study on the Spatial Pattern and Influencing Factors of China’s New Energy Vehicle Industry—Based on Data of Relevant Listed Companies from 2008–2021," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    6. Park, Jeong-Il, 2020. "Industrial diversity in building units and factors associated with diversity: A case study of the Seoul Metropolitan Area," Research Policy, Elsevier, vol. 49(5).

    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. Yi, Hongtao, 2013. "Clean energy policies and green jobs: An evaluation of green jobs in U.S. metropolitan areas," Energy Policy, Elsevier, vol. 56(C), pages 644-652.
    2. Wiser, Ryan & Bolinger, Mark & Heath, Garvin & Keyser, David & Lantz, Eric & Macknick, Jordan & Mai, Trieu & Millstein, Dev, 2016. "Long-term implications of sustained wind power growth in the United States: Potential benefits and secondary impacts," Applied Energy, Elsevier, vol. 179(C), pages 146-158.
    3. Yi, Hongtao, 2014. "Green businesses in a clean energy economy: Analyzing drivers of green business growth in U.S. states," Energy, Elsevier, vol. 68(C), pages 922-929.
    4. Yushchenko, Alisa & Patel, Martin Kumar, 2016. "Contributing to a green energy economy? A macroeconomic analysis of an energy efficiency program operated by a Swiss utility," Applied Energy, Elsevier, vol. 179(C), pages 1304-1320.
    5. Taedong Lee, 2017. "The effect of clean energy regulations and incentives on green jobs: panel analysis of the United States, 1998–2007," Natural Resources Forum, Blackwell Publishing, vol. 41(3), pages 145-155, August.
    6. Neal D. Woods & Jiyoon Kang & Morgan A. Lowder, 2023. "Do green policies produce green jobs?," Social Science Quarterly, Southwestern Social Science Association, vol. 104(2), pages 153-167, March.
    7. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    8. Duscha, Vicki & Fougeyrollas, Arnaud & Nathani, Carsten & Pfaff, Matthias & Ragwitz, Mario & Resch, Gustav & Schade, Wolfgang & Breitschopf, Barbara & Walz, Rainer, 2016. "Renewable energy deployment in Europe up to 2030 and the aim of a triple dividend," Energy Policy, Elsevier, vol. 95(C), pages 314-323.
    9. Sanya Carley & Sara Lawrence, 2014. "Energy-Based Economic Development," Springer Books, Springer, edition 127, number 978-1-4471-6341-1, November.
    10. Parrish Bergquist & Christopher Warshaw, 2023. "How climate policy commitments influence energy systems and the economies of US states," Nature Communications, Nature, vol. 14(1), pages 1-9, December.
    11. Bowen, Alex & Kuralbayeva, Karlygash & Tipoe, Eileen L., 2018. "Characterising green employment: The impacts of ‘greening’ on workforce composition," Energy Economics, Elsevier, vol. 72(C), pages 263-275.
    12. Sievers, Luisa & Breitschopf, Barbara & Pfaff, Matthias & Schaffer, Axel, 2019. "Macroeconomic impact of the German energy transition and its distribution by sectors and regions," Ecological Economics, Elsevier, vol. 160(C), pages 191-204.
    13. Sanya Carley & Adrienne Brown & Sara Lawrence, 2012. "Economic Development and Energy," Economic Development Quarterly, , vol. 26(2), pages 111-123, May.
    14. Damien Bazin & Emna Omri & Nouri Chtourou, 2015. "Solar Thermal Energy for Sustainable Development in Tunisia," Post-Print halshs-01070616, HAL.
    15. BARRIOS, Salvador & BERTINELLI, Luisito & STROBL, Eric, 2002. "Coagglomeration and growth," LIDAM Discussion Papers CORE 2002053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    16. Xiao Tang & Zhengwen Liu & Hongtao Yi, 2016. "Mandatory Targets and Environmental Performance: An Analysis Based on Regression Discontinuity Design," Sustainability, MDPI, vol. 8(9), pages 1-16, September.
    17. Rountree, Valerie, 2019. "Nevada's experience with the Renewable Portfolio Standard," Energy Policy, Elsevier, vol. 129(C), pages 279-291.
    18. Arouri, Mohamed El Hedi & Ben Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2014. "Exploring the Causality Links between Energy and Employment in African Countries," IZA Discussion Papers 8296, Institute of Labor Economics (IZA).
    19. Bowen, Alex & Kuralbayeva, Karlygash & Tipoe, Eileen L., 2018. "Characterising green employment: The impacts of ‘greening’ on workforce composition," Energy Economics, Elsevier, vol. 72(C), pages 263-275.

    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:rensus:v:78:y:2017:i:c:p:614-623. 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/wps/find/journaldescription.cws_home/600126/description#description .

    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.