This paper evaluates the economic and environmental impacts and
implications of the mid-term greenhouse gas(GHG) emissions reduction target
scenarios of Korea by utilizing a computable general equilibrium model. It
points that the contribution of Korea’s participation in the reduction scenarios
to global GHG reduction is negligible, because its share in global GHG
emissions is low. It also shows that the participation of big emitting countries
such as China and India is one of the most important factors for the
environmental effectiveness of the Post-Kyoto regime. It also finds that, to
achieve the target scenarios, the real GDP of Korea will decrease by
0.58%~1.47% relative to the level of business-as-usual in 2020, which is
much higher than the level of Korean government’s estimation. The uncertain
economic cost may lead the Korean economy to wrong direction. Therefore,
the economic cost should be verified again based on systematic and
comprehensive approach and analysis.