Structural Changes to Nuclear Energy Industries and the Economic Effects Resulting from Energy Transition Policies in South Korea

Abstract

The world’s aging fleet of nuclear power reactors faces decommissioning. Because decommissioning is implemented through a series of procedures, and this process changes the links between some industries, its economic impact needs to be investigated. This study compared the economic impacts of three nuclear industry sectors—nuclear generation, nuclear power construction, and nuclear decommissioning—using input-output analysis in South Korea, the first Asian country that has declared a nuclear phaseout. The study also traced changes in the structure of the nuclear industry during the Korean nuclear phaseout and the consequent economic impacts. The study found that the implementation of the nuclear phaseout will lead to a decrease in the induced outputs and the value added of nuclear industries in South Korea; however, this would be offset by deploying more renewable energy. In addition, the temporal impacts on individual sectors vary depending on changes in the number of reactors being decommissioned and the expenditure profile of the nuclear decommissioning sector. The findings call for policy measures that support a soft landing for nuclear industry sectors and related stakeholders, timely development of necessary technologies, and transparency in public communication. This study provides a methodological approach and input structure that can be used for studies in other countries.

Fiscal Policy Instruments and Green Development

“…This study offers recommendations by conducting an in-depth analysis of the achievements and challenges of this policy. Literature on the ROK energy transition policy is limited to the estimation of changes in the power supply cost by energy transition (KEEI 2017;Jang 2018;Cho et al 2019;Choi et al, 2020), the ROK people's willingness to pay for energy transition (Jang 2017;Lee, Lee, and Yoo 2017;GESI 2018;KEEI 2020b;, and the impact of energy transition on the national economy (Kim and Seo, 2019;Hong et al 2019;Kim and Jeon 2020). Therefore, this study fills the gap in the literature by providing policy recommendations based on a performance analysis of the ROK energy transition policy.…”

Extending the Coverage of the Trust–Acceptability Model: The Negative Effect of Trust in Government on Nuclear Power Acceptance in South Korea under a Nuclear Phase-Out Policy

“…This government reform policy, particularly the phasing out of nuclear power, has been driving Korean society into a fierce controversy in which various actors including politicians, scholars, and activists are engaged [25,26]. The pro-nuclear factions, represented by nuclear academia such as the Korean Nuclear Society, are concerned about the government's nuclear phase-out policy.…”