Carbon tax to weigh down economic growth, accelerate inflation: BOK

Choi Mira 입력 2021. 9. 16. 14:27
글자크기 설정 파란원을 좌우로 움직이시면 글자크기가 변경 됩니다.

이 글자크기로 변경됩니다.

(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.

A carbon tax as a means to achieve neutrality by 2050 could eat into South Korea’s economic growth while adding to inflationary pressure, according to a report released by the Bank of Korea on Thursday.

The central bank estimated that carbon tax would weigh down the country’s gross domestic product (GDP) by 0.08 to 0.32 percentage point and raise the consumer price by 0.02 to 0.09 percent annually by 2050, in its report on the impact of climate change measures on the macro economy.

The bank yielded the result by reflecting the cost of carbon emission as increase in carbon tax and emission reduction achieved by carbon capture, utilization and storage (CCUS) technology as decrease in carbon tax. It assumed two scenarios. The first one is where the country cuts its carbon emissions from 670 million tons in 2020 to 200 million tons by 2050 to limit the global temperature increase between 1.5 and 2 degrees above pre-industrial levels. The second one is where Korea meets its goal to achieve 100 percent net-zero in carbon emission by 2050 to limit the warming to 1.5 degrees.

The BOK said carbon tax would have a negative impact on the economic growth and inflation in the long run unless there are remarkable technological development to switch to low-carbon power generation or clean energy sources like solar, wind and green hydrogen.

The central bank also found that the government’s investment of 1 percent of the GDP would not be enough to offset the bad impact. But if the government spends a certain percent of the carbon tax revenue that will increase every year, the negative effects could significantly decrease.

“Achieving carbon neutrality by 2050 would have some negative impacts on the overall economy,” said a BOK official. “The country needs to encourage voluntary participation from the private sector and work out a detailed plan to achieve the target gradually.”

[ⓒ Maeil Business Newspaper &, All rights reserved]

ⓒ 매일경제 &, 무단전재 및 재배포 금지

이 기사에 대해 어떻게 생각하시나요?