Korea's Green Growth Strategy [E-Book]: Mitigating Climate Change and Developing New Growth Engines / Randall Jones and Byungseo Yoo
Jones, Randall.
Yoo, Byungseo.
Paris : OECD Publishing, 2011
32 p. ; 21 x 29.7cm.
OECD Economics Department Working Papers ; 798
Korea, Republic of
Full Text
Korea’s greenhouse gas emissions almost doubled between 1990 and 2005, the highest growth rate in the OECD area. Korea recently set a target of reducing emissions by 30% by 2020 relative to a "business as usual" baseline, implying a 4% cut from the 2005 level. Achieving this objective in a cost-effective manner requires moving from a strategy based on voluntary commitments by firms to market-based instruments. The priority is to establish a comprehensive cap-and-trade scheme, supplemented, if necessary, by carbon taxes in areas not covered by trading. Achieving a significant cut in emissions requires a shift from energy-intensive industries to low-carbon ones. Korea is strongly committed to promoting green growth through its Five-Year Plan, which envisages spending 2% of GDP per year through 2013. One challenge is to ensure that these expenditures are efficiently targeted so as to develop green technologies, while avoiding the risks inherent in industrial policy.