Korean Energy Economic Review ISSN:1599-7057(Print) 에너지경제연구

This study analyzed the effects on the national economy by using the Stochastic Overlapping General Equilibrium Model when energy conversion policy and demographic change such as aging occurred at the same time. The scenario used was based on the result of the energy conversion policy and the result of 20%, 50% and 100% increase in electricity rates. As a result, energy conversion policies reduce disposable income after retirement, especially at age 75, consumption by scenarios drops by 4%, 5.8% and 8%, respectively. Labor-enabled households are more likely to save more than spend in many households as a measure against reduced disposable income after retirement. This shows that consumption is decreasing as age increases, while the rate of asset reduction decreases as age increases from 30 to 60 in each scenario. As a result, it can be seen that the energy conversion policy has a greater impact on the elderly than the working age group.