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

Recently, Korea is suffering from a severe drought due to the lack of precipitation. So, the necessity of efficient use has come to the fore. This study analyzed the reductions amount of tap water and CO2 and then economic ripple effect if water saving devices were installed to home, commercial facilities and business buildings as the way of response for the lack of water. It was found that national benefit from emission right sales and cost saving is generated from minimum 1,097,699,080,000 won/year to maximum 2,213,351,650,000 won/year. We calculated cost arising from water-saving unit provision. It was found that total 26,702,856,180,000 won if we install water-saving units in the entire buildings in our country. The cost was for replacement of water-saving units in existing buildings. It is found that good result can be achieved also if it is paid to be planned subsidy for installation of water-saving units by local governments. To maximize these effect it is desirable to implement so called, 'Water Use Efficiency Authentication System'. If we maximize water use efficiency through demand control and reduce quantity of CO2 through water saving, 'Water Efficiency Credit(WEC)' then we can use it as Korean Credit Unit(KCU), it will contribute to alleviating imbalance between supply and demand of the emission trading system. Also, it will contribute to revitalize the ETS.