Treatment of indirect emissions from the power sector in Korean emissions trading system

Kim, Yong-Gun; Lim, Jae-Han

doi:10.1007/s10018-020-00282-7

Cited by 7 publications

(2 citation statements)

References 15 publications

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“…The impact of the KETS remains understudied, with work focusing on a specific industry, such as petrochemical [ 19 ], steel [ 20 ], and power plants [ 21 , 22 ], from an efficiency standpoint. Three prior studies assess the overall effectiveness of the KETS.…”

Section: Introductionmentioning

confidence: 99%

Impact of Korea’s emissions trading scheme on publicly traded firms

O.,

Miteva,

Lee

2023

PLoS ONE

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Reducing fossil fuel energy consumption and greenhouse gas (GHG) emissions is vital to protecting life on the planet. Globally, emissions trading schemes are gaining traction as one way to curb emissions. However, the evidence of their effectiveness remains scarce. To address this gap, we examine the impact of Korea’s Emissions Trading Scheme (KETS), the first nationally mandated cap-and-trade program in East Asia to reduce GHG emissions, relative to its pre-existing command-and-control regulation called the Target Management System for Greenhouse Gases and Energy (TMS). Using panel data for publicly traded firms between 2011 and 2017, we apply a combination of panel data estimators and matching methods. We find that KETS did not significantly reduce emissions by firms but may have improved the aggregate efficiency in energy use in the energy and manufacturing sectors. Given the low levels of noncompliance with the first phase of the policy, it is likely that firms purchased permits and offsets or used previously banked permits to meet policy targets. Our work is one of the first efforts to understand the impact of KETS and the mechanisms underpinning its impact.

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Section: Introductionmentioning

confidence: 99%

Impact of Korea’s emissions trading scheme on publicly traded firms

O.,

Miteva,

Lee

2023

PLoS ONE

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“…Based on the research of Minunno et al, (2021) [ 25 ], this paper defines embodied carbon as the sum of direct and indirect carbon dioxide emissions in the process of producing products and/or services. Here, the direct emissions refer to the carbon emissions caused by the direct use of energy or other direct actions in the production of final products [ 26 , 27 ], while the indirect emissions refer to the carbon emissions generated by the input of intermediate products in the production process [ 28 , 29 ].…”

Section: Introductionmentioning

confidence: 99%

Embodied Carbon in China’s Export Trade: A Multi Region Input-Output Analysis

Yang

Gao

Yang

et al. 2022

IJERPH

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With the rapid growth of China’s export trade and increasing pressure of domestic carbon emission reduction, the issue of carbon embodied in export trade has attracted increasing attention from academic circles. This paper has constructed a calculation model for embodied carbon in China’s export trade by using the multi-region input-output model and the international input-output data from the World Input-Output Database (WIOD) database in order to calculate the amount of embodied carbon. Our objective is to analyze the main source industry and specific sectors of embodied carbon in China’s export trade, and to provide a quantitative basis for emission reduction under the “carbon neutrality” strategy. The findings reveal that the embodied carbon in China’s export trade mainly comes from the secondary industry, which accounts for more than 90% of the total embodied carbon in export trade, while the proportions of embodied carbon in the primary industry and the tertiary industry are relatively low, about 1% and 5–7%, respectively. In terms of specific sectors, the crop and animal production and hunting sectors have the largest share (over 60%) of embodied carbon in the export trade of the primary industry; in the export trade of the secondary industry, the main sources of embodied carbon are the manufacturing sector and the power, gas, steam and air-conditioning supply sectors, respectively accounting for around 50% and 45% of the total embodied carbon in the export trade of the secondary industry; as for the tertiary industry, the transport and storage sectors have the largest share of embodied carbon in the export trade, which is around 70%. Based on the above research results, this paper has provided relevant policy recommendations, which are optimizing the export structure, improving the energy consumption structure and the carbon emissions trading system.

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EEPS special issue on “Carbon Pricing in East Asia”

Arimura

Duan

2021

Environ Econ Policy Stud

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Announcements of carbon neutrality, i.e. net zero emissions, have become the norm in the international community. Given the unprecedented severe weather in many parts of the world, nations have started to declare carbon neutrality goals. In 2019, the European Union (EU) announced the goal of carbon neutrality by 2050. In September 2020, the Chinese government also announced a carbon neutrality goal by 2060. In October 2020, both the Japanese and Korean governments declared a goal of carbon neutrality by 2050. After winning the presidential election, the new US president Biden also announced a goal of carbon neutrality by 2050.Obviously, there is no free lunch in achieving carbon neutrality. Carbon neutrality comes with nonnegligible costs. According to the estimate of the Committee on Climate Change, reaching net zero emissions by 2050 could cost up to 1-2% of GDP per year by 2050 in the UK Ekins (2019). Therefore, we must find a way to reduce the costs of carbon mitigation. Economic theory suggests that the use of market mechanisms, i.e., carbon pricing, is one answer. In fact, many developed countries have adopted carbon pricing systems such as emissions trading schemes (ETS) or carbon taxes.The EU introduced its carbon market, known as the European Union Emissions Trading Scheme (EU ETS), in 2005. In the United States, 10 states in the northeast implemented the Regional Greenhouse Gas Initiative (RGGI) in 2009. New Zealand has also adopted an ETS. This trend has reached other parts of the world. In 2010, the Tokyo Metropolitan Government introduced the first ETS in Asia (Abe and Arimura 2021). In Japan, Saitama Prefecture, which is next to Tokyo, introduced an This special issue is based on the thematic session of "Carbon Pricing in East Asia" at the 9th annual congress of Asian Association of Environmental and Resource Economics in Beijing, 2019. We are grateful for the comments from the participants. Toshi Arimura is grateful to the Environment Research and Technology Development Fund (2-1707 and 2-2008) of the Environmental Restoration and Conservation Agency.

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Treatment of indirect emissions from the power sector in Korean emissions trading system

Cited by 7 publications

References 15 publications

Impact of Korea’s emissions trading scheme on publicly traded firms

Impact of Korea’s emissions trading scheme on publicly traded firms

Embodied Carbon in China’s Export Trade: A Multi Region Input-Output Analysis

EEPS special issue on “Carbon Pricing in East Asia”

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