Assessing Alternative Renewable Energy Policies in Korea’s Electricity Market

Artikel

This paper, focusing on the renewable portfolio standard (RPS), evaluates alternative renewable energy policies. We propose a tractable equilibrium model which provides a structural representation of Korea’s electricity market, including its energy settlement system and renewable energy certificate (REC) transactions. Arbitrage conditions are used to define the core value of REC prices to identify relevant competitive equilibrium conditions. The model considers R&D investments and learning effects that may affect the development of renewable energy technologies. The model is parameterized to represent the baseline scenario under the currently scheduled RPS reinforcement for a 20% share of renewable generation, and then simulated for alternative scenarios. The result shows that the reinforcement of the RPS leads to higher welfare compared to weakening it as well as repealing it, though there remains room to enhance welfare. It turns out that subsidies are welfare-inferior to the RPS due to financial burdens and that reducing nuclear power generation from the baseline yields lower welfare by worsening environmental externalities.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: KDI Journal of Economic Policy ; ISSN: 2586-4130 ; Volume: 41 ; Year: 2019 ; Issue: 4 ; Pages: 67-99 ; Sejong: Korea Development Institute (KDI)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Renewable Resources and Conservation: Demand and Supply; Prices ; Renewable Resources and Conservation: Government Policy ; Nonrenewable Resources and Conservation: Demand and Supply; Prices
• Thema: Electricity Market ; Renewable Portfolio Standard ; Technology ; Renewable Energy Certificate ; Welfare

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kim, Hyunseok
• Ereignis: Veröffentlichung
• (wer): Korea Development Institute (KDI)
• (wo): Sejong
• (wann): 2019

Weitere Informationen

• DOI: doi:10.23895/kdijep.2019.41.4.67
• Handle: http://hdl.handle.net/10419/210413
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ