Estimation of the Elasticity of Energy Demand and Performance of the Second Energy Tax Reform in Korea

수요탄력성 추정을 통한 2차 에너지 세제개편의 성과평가

  • 강만옥 (한국환경정책.평가연구원) ;
  • 이상용 (성균관대학교 경제학과) ;
  • 조장율 (친환경상품진흥원 친환경상품연구센터)
  • Published : 2008.09.30

Abstract

The goal of this study is to analyze the effects of the second energy tax reform of the transportation sector in Korea. For this purpose, we estimated the elasticities of energy demand(for gasoline, diesel and LPG) by using the ARDL(Auto-Regressive Distributed Lag) Model during the period of 1997 and 2005. We have the empirical results that the demand for diesel would decrease as much as of 382 million barrel per year and the demand for LPG would increase as much as of 20 million barrel per year since 2007. The second energy tax reform would also result in the decrease of 27,346 ton of air pollutants and 0.96 million ton of carbon dioxide per year. This shows that the second energy tax reform would have achieved its own policy goals by reducing energy demand and improving the quality of environment.