The role of the four electric power sectors in the Korean national economy: an input-output analysis

The electric power industry has played an important role in the dramatic economic development in Korea, and electricity has become a critical factor sustaining the well-being of the Korean people. This study uses input-output analysis to investigate the role of the four electric power sectors (hydroelectric, fossil-fuels, nuclear and non-utility) in the Korean national economy for the period 1985-1998, focusing on three topics: the impact of electricity supply investment on individual sectors and the inter-industry linkage effect: the electricity supply shortage effect; and the impact of the rise in electricity rates on prices of other products. The overall results reveal that the non-utility electric sector is superior in terms of national economy-wide effects to the other three sectors throughout the period. Finally. potential uses of the results are illustrated from the perspective of policy instruments and some policy implications are discussed. (C) 2003 Elsevier Ltd. All rights reserved.