Abstract
This study analyzes the external economic effects on thermal power generation, examines the feasibility of overlapping taxes, burdens, and compensations on thermal power generation, and examines the appropriateness of the tax rate increase of regional resource facilities tax. Specifically, we analyzed the effects of electricity rate hikes and the external uneconomic effects of thermal power generation due to the increase in local resource facility tax rate on thermal power generation.
According to the tax rate increase, the total increase was about 55.5 billion won from 55.28 trillion won to 55.34 trillion won. By electricity use, general use was 23.9 billion won, industrial use 16.7 billion won, and residential use 12.3 billion won. In particular, the rate of increase is the highest for general use at 0.17%, followed by 0.15% for residential use, and the lowest for industrial use at 0.06%.
These results show that the increase in the local resource facility tax on thermal power generation can be relatively passed on to the general household sector, which can increase the burden of electricity bills.
In addition, the amount of external economic distress caused by thermal power generation is 2.33 trillion won (1.74 trillion won thermal power generation), while the total tax and charges paid by the thermal power plant for the environment are 3.76 trillion won. The total tax amount is 2.87 trillion won (Regional development tax 93.2 billion + 2.93 trillion for individual consumption tax on bituminous coal) and the contribution amount is 1.11 trillion won (REC purchase 556.7 billion + carbon emission right 350.4 billion + support industry fund 97.6 billion + Fishery rights compensation 4.7 billion + other 1.7billion).
This represents 187.6% of the tax burden on the total amount of external economic distress caused by thermal power generation, 216.3% in public thermal power generation and 266.5% in coal-fired power generation. It is already paying twice as much as taxes or contributions. Through this, it can be interpreted that the internalization of external economic distress caused by thermal power generation was realized.
According to the tax rate increase, the total increase was about 55.5 billion won from 55.28 trillion won to 55.34 trillion won. By electricity use, general use was 23.9 billion won, industrial use 16.7 billion won, and residential use 12.3 billion won. In particular, the rate of increase is the highest for general use at 0.17%, followed by 0.15% for residential use, and the lowest for industrial use at 0.06%.
These results show that the increase in the local resource facility tax on thermal power generation can be relatively passed on to the general household sector, which can increase the burden of electricity bills.
In addition, the amount of external economic distress caused by thermal power generation is 2.33 trillion won (1.74 trillion won thermal power generation), while the total tax and charges paid by the thermal power plant for the environment are 3.76 trillion won. The total tax amount is 2.87 trillion won (Regional development tax 93.2 billion + 2.93 trillion for individual consumption tax on bituminous coal) and the contribution amount is 1.11 trillion won (REC purchase 556.7 billion + carbon emission right 350.4 billion + support industry fund 97.6 billion + Fishery rights compensation 4.7 billion + other 1.7billion).
This represents 187.6% of the tax burden on the total amount of external economic distress caused by thermal power generation, 216.3% in public thermal power generation and 266.5% in coal-fired power generation. It is already paying twice as much as taxes or contributions. Through this, it can be interpreted that the internalization of external economic distress caused by thermal power generation was realized.
| Translated title of the contribution | Local Resource Utilities Tax and Internalization of Externality of Thermal Power Generation |
|---|---|
| Original language | Korean |
| Pages (from-to) | 243-266 |
| Number of pages | 24 |
| Journal | 조세연구 |
| Volume | 19 |
| Issue number | 4 |
| DOIs | |
| State | Published - 2019 |