[pp.69-80]

Driving Forces behind the World’s Fastest Increase in CO2 Emission of Korea in 1990s: Growth, Trade and Industrial Trans

Hyangmin KIM, Shinji KANEKO and Masaru ICHIHASHI （Hiroshima University）

Abstract:
This study tries to investigate the drivers for the world’s fastest CO2 emission growth in Korea during the period 1990 to 2000 by applying input-output analysis and decomposition analysis. As a driver among others, we focus on the energy-intensive export industries: machinery, petroleum refinery, steel and motor vehicle industries which have an important role for Korean economic growth. The results show that the absolute values of CO2 emissions from four major Korean export industries as well as their share to the total CO2 emissions of the country have been increasing from 1990 to 2000. Particularly, the increase during the period 1995 to 2000 is driven by the increase in export demand from China. This study suggests that when Korea aspires for a low carbon economy towards fulfilling its international commitment beyond Kyoto protocol, the extent of the transformation from the past economic development model should be significantly large.

Key Word:
input-output analysis, CO2 emission, international trade, Korea

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