The role of the nuclear power generation in the Korean national economy: An input-output analysis

The nuclear power generation has played an important role in the economic development of Korea and electric power has become a critical factor sustaining the well-being of the Korean people. This paper attempts to apply input-output (I-O) analysis to investigate the role of the nuclear power generation in the national economy, with specific application to Korea. A static I-O framework is employed, focusing on three topics in its application: the impact of nuclear power supply investment on the production of other sectors and the inter-industry linkage effect; the nuclear power supply shortage effect; and the impact of the rise in nuclear power rate on prices of other products. This paper pays particular attention to the nuclear power generation sector by taking the sector as exogenous and then investigating its economic impacts. Moreover, potential uses of the results are illustrated from the perspective of policy instruments and some policy implications are discussed.