Basic Report

Currently coming policy, low carbon green growth, is amplified as a national growth engine. Therefore, it needs to show bases, which estimate the spill over effects of low carbon green growth policy, in order to draw up a low carbon green growth policy as a national vision.Before estimating, this study suggests literature reviews about estimation method for non-estimated value such as CVM (contingent valuation method), CRM (contingent ranking method), TC (travel method), hedonic price method, etc. This study sets a goal to build a model and estimatesregional economic development effects.In addition, it presents correspondent plan of the central and local governments. In order to estimate regional economic development effects, it used contingent valuation method to find out willingness to pay of 16 cities and provinces through 480 surveys. Survey contains questionnaires on industry, energy, living environment, and regional development. After conducting a survey and extracting WTP, this study uses WTP as an impact on CGE (computable general equilibrium model) model to estimate macro economic variation. The results of CVM and WTP ranges from 11,281.9 to 15,366.3 Korean won. And using these WTP as an impact on CGE model increases the welfare effects by 0.45%. On the whole low carbon green growth increases utility of the nation. Also among secondary industries, the 1st industry reports 17% increase in added value, while pubic administration and national defense show 10% increase in tertiary industries through low carbon green growth. These results are opposite from what we assume by low carbon green growth in secondary industries. While general machinery, metal metallic products, and non metallic mineral products in secondary industriesare decreased below 10%. Therefore advancement in technology and creation of foundation through low carbon green growth produce positive effect on throughout the industry.In order to maximize the effects that low carbon green growth gives, firstly, government needs to find political measures which manage green industry or technology. Secondly, improvement in technology and policy system which manages regional effect by low carbon green growth is needed. Finally, responsibility and role sharing between the central and local governments is crucial.   Key word : low carbon green growth, contingent valuation method, computable general equilibrium model