The Economic Impacts of CCS Marine Geological Storage Demonstration Project on the National Economy using Input-output Analysis

Abstract

In this study, we attempt to examine the economic impacts of the CCS marine geological storage demonstration project in Korea using Input-Output analysis utilizing the inter-industry relation table issued in 2013. In particular, this study defines the CO₂ ocean storage industry and then added the inter-industry relation table and treated the CO₂ ocean storage industry as exogenous. In addition, this study assumed two scenarios based on the means of CO₂ transport, which are pipe and ship. After defining the industry and scenarios, this study investigates the production-inducing effect, value added inducing effect, and employment-inducing effect of the industries associated with the CO₂ ocean storage industry based on a demand-driven model. The results pertaining to the scenarios are estimated as follows: total production-inducing effects, value added inducing effects, and employment-inducing effects are calculated as 1.9044 won, 1.2487 won and 16.7224 people/billion won, respectively. In addition, compared to other industries, the indirect economic impacts of the CO₂ ocean storage industry are ranked high: the rankings of production-inducing effects, value added inducing effects, and employment-inducing effects are fourth, second, and fifth, respectively.