The role of nuclear power in the sustainable energy future of Korea

The purpose of this study is to analyze the role of nuclear power in the sustainable energy supply future of Korea. For this purpose, an energy-economy interaction model of the computational general equilibrium (CGE) approach, the Korean Energy and Environmental Policy model(KEEP) was adapted. The model is a non-linear optimization model that maximizes the discounted value of Korean economic utility. The model operates over the time horizon of 1995–2040 in annual steps.

Some scenarios are established in accordance with three possible nuclear growth rate and the strength of the carbon tax imposed. At first, business as usual(BAU) nuclear growth scenario was set up and maintaining the current installed capacity and phasing out the nuclear power options are considered. After that, the investigation has been done on each scenario in the case that a tax for CO₂ emission regulation was imposed.

Results show that limiting CO₂ emissions with a nuclear phase out scenario will have the most serious impact on the economic welfare compared with the other scenarios. If the CO₂ emission target will be imposed in Korea in the foreseeable future, nuclear power will play an important role in mitigating the economic impacts.

This analysis gives us a chance to consider the trade-offs between the most important energy issues of today-concerns with the risk of nuclear power, those involving future climate change, and energy security.