This study estimated the induced effects of LNG, mega PV (photovoltaic), small PV, onshore wind and offshore wind power, which will be used as major power sources under the Korea’s energy transition policy. The 2015 Input–Output Statistics of Bank of Korea were used to reflect Korea’s economic structure. The MCI (manufacture, construction and installation) and O&M (operation and maintenance) of each power source would have different effects, so in the analysis the MCI and O&M of each power source were distinguished. According to estimation results, the induced-effect coefficients of the MCI are greater than those of the O&M in every power source. The induced production effect coefficient of the MCI is decreased in the order of mega PV > small PV > LNG power > offshore wind > onshore wind. The induced production effect coefficient of the O&M is decreased in the order of mega PV > small PV > onshore wind > offshore wind > LNG thermal. The induced employment coefficient of the MCI is decreased in the order of LNG thermal > mega PV > small PV > onshore wind > offshore wind. PV power and wind power have bigger induced effects and bring economic effects in Korean economy. The carbon neutrality and energy transition policies implemented by Korea have a certain level of induced effects and offset the burden of transition costs even if existing power sources are replaced with environmentally friendly power sources.

Ji Whan Kim. Econ. Environ. Geol. 2021;54:573-80. https://doi.org/10.9719/EEG.2021.54.5.573

International energy price changes can lead energy-importing economies to adjust their input factor choices, and Korea provides a useful case given its very high dependence on imported primary energies. This study estimates a primary energy input-demand system for Korea using quarterly data from 2000 to 2021, covering coal; crude oil; natural gas; labor; and others, including non-primary energy inputs. Our analysis uses LA-AIDS specifications. Breakpoint unit-root and cointegration tests support structural change around the global financial crisis, and this shift is incorporated through period-specific parameters within a unified demand system. The compensated elasticities indicate that crude oil becomes more price sensitive after the break, while coal and natural gas become less responsive to their own prices. Cross-price relationships also change, with weaker substitution among the primary energies and greater substitution between crude oil and others. These findings suggest that the ability to adjust inputs and the economic effects of international price changes can vary over time, which should be taken into account in energy policy evaluation.

In this study, a pre-feasibility assessment was performed on a mine that intended to develop a new ore body adjacent to an existing mining area under development. For this purpose, a final pit was designed using a grade block model of the ore body, and a production schedule for 11 million tons per year was established. In this study, mining costs were evaluated using an engineering-based production evaluation rather than a constant unit cost multiplied by production. When the unit operating cost evaluated in 2020 was compared to the cost investigated after the evaluation point, the error between the two costs was observed to be low, particularly given the entity that actually mines ore. The mining a new mining area was deemed economically viable, with the ore price being the most significant factor.