IDEAS home Printed from https://ideas.repec.org/a/wsi/ccexxx/v16y2025i01ns2010007824400116.html
   My bibliography  Save this article

The Economic Impacts Of Implementing Net Zero Policies In Korea: A Combined Top-Down And Bottom-Up Approach

Author

Listed:
  • KI-BOK CHANG

    (Korea Environment Institute, 370 Sicheong-daero, Sejong 30147, Korea)

  • SUNG WON KANG

    (Korea Environment Institute, 370 Sicheong-daero, Sejong 30147, Korea)

  • OH SANG KWON

    (��Department of Agricultural Economics and Rural Development and Integrated Major in Global Smart Farm, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea)

  • SEOUNGHO LEE

    (��Korea Energy Economics Institute, 405-11 Jongga-ro, Jung-gu, Ulsan 44543, Korea)

  • JEONGEUN LEE

    (Korea Environment Institute, 370 Sicheong-daero, Sejong 30147, Korea)

  • YOONMO KOO

    (Technology Management, Economics and Policy Program, College of Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea5Graduate School of Engineering Practice, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul, 08826, Korea)

Abstract

The South Korean government aims to achieve carbon neutrality by 2050. Here, this study analyzed the economic efforts of the net-zero policy by integrating top-down and bottom-up models; The UNIfied Climate Options Nexus (UNICON) within this study aims to create a link between the 26 sectors from the bottom-up model and the 85 sectors of the top-down model. Positive mathematical programming methods were used to ensure consistency between the top-down and bottom-up models within the base year. The study found that the total reduction rate was slightly higher in the integrated model than in the computable general equilibrium (CGE) stand-alone model. In both models, the reduction rate increased when the carbon tax increased, but the marginal reduction rate was considerably lowered, and the reduction rate did not exceed 80% even with the high level of a carbon tax. The technological change of the linked industries in the integrated model showed that the steel industry had the highest emission reduction. When estimating costs for reducing GHGs, results can vary based on the technological changes under consideration.

Suggested Citation

  • Ki-Bok Chang & Sung Won Kang & Oh Sang Kwon & Seoungho Lee & Jeongeun Lee & Yoonmo Koo, 2025. "The Economic Impacts Of Implementing Net Zero Policies In Korea: A Combined Top-Down And Bottom-Up Approach," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 1-18, February.
    • Handle: RePEc:wsi:ccexxx:v:16:y:2025:i:01:n:s2010007824400116
    DOI: 10.1142/S2010007824400116
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2010007824400116
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2010007824400116?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.

    More about this item

    Keywords

    Carbon; CO2; net-zero; CGE; bottom-up; UNICON;
    All these keywords.

    JEL classification:

    Statistics

    Access and download statistics

    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:wsi:ccexxx:v:16:y:2025:i:01:n:s2010007824400116. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/cce/cce.shtml .

    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.