The electricity shortage cost in Korea

An input-output analysis

H. C. Ju, S. H. Yoo, Seung-Jun Kwak

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

The highly reliable infrastructure of Koreas electricity sector has played a key role in the well-being of Koreans. The reliability of electricity supply is characterized almost exclusively by shortage costs. This study employs input-output analysis to measure the electricity shortage costs in Korea and determine the optimal way in which limited electric power resources can be allocated to various sectors while maximizing the total value added. The results indicate that the marginal cost of unsupplied electricity ranged from KRW 147 to KRW 5,891 per kWh and that these total costs depended not only on the shortage percentage of each non-electricity sector but also on the level of its final demand. The quantitative results are expected to be useful for policymakers attempting to set economic reliability standards and plan curtailment strategies for electricity supply and demand.

Original languageEnglish
Pages (from-to)58-64
Number of pages7
JournalEnergy Sources, Part B: Economics, Planning and Policy
Volume11
Issue number1
DOIs
Publication statusPublished - 2016 Jan 2

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input-output analysis
electricity
Electricity
electricity supply
cost
Costs
infrastructure
resource
economics
Economics

Keywords

  • Electricity
  • input-output analysis
  • Korea
  • marginal cost
  • shortage cost

ASJC Scopus subject areas

  • Chemical Engineering(all)
  • Energy Engineering and Power Technology
  • Fuel Technology

Cite this

The electricity shortage cost in Korea : An input-output analysis. / Ju, H. C.; Yoo, S. H.; Kwak, Seung-Jun.

In: Energy Sources, Part B: Economics, Planning and Policy, Vol. 11, No. 1, 02.01.2016, p. 58-64.

Research output: Contribution to journalArticle

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