A survey analysis of company perspective to the GHG emissions trading scheme in the Republic of Korea

In Critical Issues in Environmental Taxation.
Volume (Issue): Volume XIV
Peer-reviewed Article
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This study discussed two topics; one is to monitor the opinions of Korean companies to various aspects of GHG ETS, and other is to identify the difference in companies’ viewpoints due to their characteristics in organizational size, sector and ownership. This analysis was carried out in a qualitative manner using the 66 data collected by a questionnaire survey to energy-intensive cement, iron and steel and petro-chemical industries.
This study observed that most of the surveyed companies are still opposed to the introduction of GHG ETS although the introduction schedule has been decided by the government. Company size and sector significantly determine their evaluation of negative aspects of GHG ETS. It clarifies the difficulties and expectations of the industry for GHG ETS. A meaningful finding form this survey is that the companies would make internal efforts in energy saving and GHG mitigation and invest in energy efficient technologies rather than simply transfer the policy burden to their clients. This study suggests that Korean government shall make efforts to meet companies’ expectation to overcome the barriers, for examples, the coordination of GHG ETS with ongoing policies, declaration of the method for emission allowance allocation, clarification of responsibilities of authorities in charge, and capacity building are the priorities.
With a view to introduction of a domestic GHG ETS in Korea, this research provides a basis for better understanding of an industrial perspective, which may be referred for the discussion and development of the GHG ETS.