Assessing the Socio-Economic Effects of Korea's Nuclear Power Policy

Abstract

Although nuclear power is one of the most critical issues in Korean energy policy, there are few comprehensive studies on its direct and indirect economic impacts. In this study, we analyze the economic changes caused by alternative nuclear power policies, including caps for greenhouse gas (GHG) emissions. For this purpose, we construct three scenarios: Expansion, no change, and reduction in the share of nuclear power in total power generation. Methodologically, we develop a computable general equilibrium (CGE) model with detailed energy and electricity sector representation and apply the model by utilizing current and projected data on the Korean economy and its energy demand structure. The simulation results quantitatively demonstrate economic and welfare losses when the share of nuclear power in total power generation decreases.