Republic of Korea: SEEA pilot compilation

Comparative Analysis of National Accounts Incorporating Environmental Issues

“…The latter depends on the shape of the marginal abatement cost function which is generally downward sloping, and marginal costs can sharply increase as the amount to be reduced decreases. In the Korean estimates for BOD discharge they used "the levelized annual cost of construction of an activated sludge treatment plant of 20,000-100,000 tons/day capacity with 15 years of life expectancy and a discount rate of 10%, and adding current costs" (Kim et al 1998). Using investment and running costs in the calculations will bring us closer to the real cost of abatement, and also follows the standard cost calculation of economic activities.…”