Xiujie Tan , Rui Wang , Yongrok Choi , Hyoungsuk Lee
{"title":"Does Korea's carbon emissions trading scheme enhance efficiency for sustainable energy and utilities?","authors":"Xiujie Tan , Rui Wang , Yongrok Choi , Hyoungsuk Lee","doi":"10.1016/j.jup.2024.101752","DOIUrl":null,"url":null,"abstract":"<div><p>A carbon emissions trading scheme (ETS) should theoretically increase investment in sustainable energy and utilities, promoting energy efficiency in line with sustainable development and energy transition goals. However, whether Korea's ETS improves or impairs energy efficiency for sustainable energy and utilities is disputed. This study addresses this debate, using panel data from 16 sectors in Korea from 2011 to 2020 and employing a dynamic difference-in-differences (DID) method to estimate the effect of Korea's ETS on total factor energy efficiency and its influencing mechanisms. The main findings are as follows. First, while the effect appeared statistically insignificant in the analyses of the industry as a whole, improving energy efficiency demonstrated a moderate effect for the agriculture industry in terms of research and development investment, fixed assets, and operating income when performing heterogeneity and moderation effect analyses. Second, a company's production dependence on labour is unfavourable to improving energy efficiency through ETS. Lastly, the adverse impact of labour dependence is more prominently observed in light industries, particularly in durable goods and agricultural sub-sectors. Therefore, this reaffirms that the key to increasing energy efficiency is to adjust Korea's ETS flexibly, considering the characteristics of each industry.</p></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":null,"pages":null},"PeriodicalIF":3.8000,"publicationDate":"2024-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Utilities Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0957178724000456","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
A carbon emissions trading scheme (ETS) should theoretically increase investment in sustainable energy and utilities, promoting energy efficiency in line with sustainable development and energy transition goals. However, whether Korea's ETS improves or impairs energy efficiency for sustainable energy and utilities is disputed. This study addresses this debate, using panel data from 16 sectors in Korea from 2011 to 2020 and employing a dynamic difference-in-differences (DID) method to estimate the effect of Korea's ETS on total factor energy efficiency and its influencing mechanisms. The main findings are as follows. First, while the effect appeared statistically insignificant in the analyses of the industry as a whole, improving energy efficiency demonstrated a moderate effect for the agriculture industry in terms of research and development investment, fixed assets, and operating income when performing heterogeneity and moderation effect analyses. Second, a company's production dependence on labour is unfavourable to improving energy efficiency through ETS. Lastly, the adverse impact of labour dependence is more prominently observed in light industries, particularly in durable goods and agricultural sub-sectors. Therefore, this reaffirms that the key to increasing energy efficiency is to adjust Korea's ETS flexibly, considering the characteristics of each industry.
期刊介绍：
Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services.
Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.
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