Analysis of energy use and co2 emissions of Korean industry sector under carbon policies

This study develops the industry sector of Korea from the general aggregated form to a technologically detailed energy model within the framework of Integrated Assessment Model. The industrial sector is expanded to 12 subsectors (including cement), which utilizes seven types of energy services, that in turn consumes five forms of fuels: biomass, coal, electricity, gas, and refined liquids. The upgraded model is then set as reference, on top of which scenarios are applied: carbon policies and advance energy efficiencies. All scenarios results on both lower energy consumption in industry sector and CO₂ emission. The detailed model show that some subsectors or energy services get impacted by the scenarios differently than others. For example, the carbon policy affects the iron and steel, chemical, and cement subsectors stronger than others. Another one is boilers and machine drive services that are more responsive to the energy technology improvement. The utilization of and IAM also gives advantage of comprehensive analysis, allowing us to examine different path to reach a policy target and observe the ripple effect of a policy, among others.