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Achieving the “Low Carbon, Green Growth” Vision in Korea

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  • Randall S. Jones
  • Byungseo Yoo
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    Abstract

    Korea, which has had the highest growth rate of greenhouse gas emissions in the OECD area since 1990, adopted an ambitious Green Growth Strategy in 2009. It aims at reducing emissions by 30% by 2020 relative to a “business as usual” scenario, implying a 4% cut from the 2005 level. The Strategy also includes a Five-Year Plan with public spending of 2% of GDP per year to promote green growth. Korea is planning to establish a carbon price through a cap-and-trade emissions trading scheme. Such an approach, combined with a carbon tax in sectors not covered by the scheme, is necessary to reduce emissions in a cost-effective manner and foster innovation in green technology. In addition, each sector should face the same electricity price based on production costs to promote efficient energy use. Given market failures, the government has a role to play in green R&D, particularly for basic research, in fostering green finance and in developing renewable energy resources. Concrétiser le projet d'une « croissance verte et sobre en carbone » en Corée La Corée, qui affiche le plus fort taux d’accroissement des émissions de gaz à effet de serre de la zone OCDE depuis 1990, a adopté en 2009 une ambitieuse Stratégie de croissance verte. L’objectif est de réduire de 30 % les émissions d’ici à 2020 par rapport au scénario « au fil de l’eau », ce qui équivaut à une baisse de 4 % par rapport à leur niveau de 2005. La Stratégie institue également un Plan quinquennal qui prévoit les dépenses publiques correspondant à 2 % du PIB par an pour promouvoir la croissance verte. La Corée envisage de créer un prix du carbone grâce à la mise en place d’un système de plafonnement et d'échange de permis d'émissions. Une telle approche conjuguée à l’application d’une taxe carbone dans les secteurs non concernés par ce système est nécessaire pour abaisser les émissions de manière efficace et économe et stimuler l’innovation dans les technologies vertes. En outre, chaque secteur devrait se voir appliquer le même prix de l’électricité, fondé sur les coûts de production, afin de promouvoir une utilisation rationnelle de l’énergie. Compte tenu des défaillances du marché, les pouvoirs publics ont un rôle à jouer dans la R-D verte, notamment dans le domaine de la recherche fondamentale, dans la promotion de la finance verte et dans le développement des énergies renouvelables.

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    File URL: http://dx.doi.org/10.1787/5k97gkdc52jl-en
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    Bibliographic Info

    Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 964.

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    Date of creation: 05 Jun 2012
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    Handle: RePEc:oec:ecoaaa:964-en

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    Keywords: Korea; renewable energy; R&D; energy efficiency; carbon tax; energy subsidies; green certificates; emissions trading system; National Strategy for Green Growth; environmental taxes; electricity pricing; Five-Year Plan; climate change; greenhouse gas emissions; green growth; Korean economy; taxes environmentales; subventions d'énergie; R-D; certificats verts; changement climatique; Plan quinquennal; Corée; tarification de l’électricité; économie coréenne; système d'échange de permis d'émission; stratégie nationale pour la croissance verte; taxe carbone; croissance verte; énergies renouvelables; efficacité énergétique; émissions de gaz à effet de serre;

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