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

This study compared the relative fuel cost, relative tax rate, greenhouse gas (GHG) emission, air pollutant emission, and electricity rate increase rates by setting two scenarios that impose carbon pricing, one of the 2030 NDC GHG emission targets. In order to achieve the 2030 GHG emission target, scenario 1 should strengthen the current individual consumption tax to set the tax rate of 120.0 won/kg for bituminous coal and 122.9 Won/kg for LNG, and scenario 2 should replace the current individual consumption tax with the carbon price system to set the carbon price to 70,000 Won/tCO₂. Both scenarios 1 and 2 achieve the 2030 NDC GHG emission target, and compared to the baseline scenario, SOx and PM in scenarios 1 and 2 decreased by 58~59% and NOx decreased by 28~29%, making it more environmentally friendly. As of 2030, the government may preferred scenario 1 because electricity price increased by 23.7% in scenario 2, 6.6%p more than the increase rate in scenario 1. However, when designing an tax reform to reduce carbon emission, the government should adopt a reasonable and acceptable method that comprehensively considers tax base, relative tax rate by fuel source, electricity price, air pollutant emission, and tax revenue utilization and etc.