Resource Circular National CGE modeling for
Korean Economy: Environmental Policy for
Economic Performance
Focusing…
1. Waste flow by sector in Korea:
Generation/Treatment/Recycling
2. Compilation of Recycling Waste in Flow into Economy
by Types of Waste link to Economic Activities

Jae Joon Kim and Sang In Kang
Korea Environment Institution
The 11th AIM International Workshop
19-21, February 2006, Ohyama Memorial Hall, NIES

Content
 progress of modeling work: N-CGE withwaste flow for Korea
 Waste Flow in Korea
 Data sources for Waste Flow Compilation of Korean Waste Flow Work to doProgress in AIM/Material Korea
PolicyAnalysis
Integration of2006

Waste Flow
Dynamic extension
With macroeconomic data

Energy specific Static model,
basic data, model run,

2005

2004

Waste Recycling Flow in Korea
export of recycling goods to major countries
9530
10000

7718
5600

8000

4608

2688
6000

335

ton

Export trend of recycling good in Korea

4000
2000
0N-Korea

China

2003

2004

M alaisia

ton-expert value

25000

22070

20000
15000
10741

10000

6632
3739

5000
789
0723

3051

1998 1999 2000 2001 2002 2003 2004

Data sources1 and problems

1. Trend of total waste generation and treatment in Korea(KMOE, 2001)
Official Publication data iii
Totalwaste generation
management
data by regions
2. Waste
Statistics
survey in andKorea(KMOE, 2001)
and simplified
conductedby KEI waste type
No industrial waste flow data=>>choose Totalwaste(Koreageneration: T_indw
3. Waste
Recycling
Statistics
ResourceCorporation)

Data sources 2 and problems
2. Waste Census in Korea (KMOE, 2001) conducted by KEI

Industrial waste generation data (KSIC) by detailed waste type
Industrial Treatment data by waste type in unit value:
kg/person/day
But…

Total Generation not equal to total management

Need to calculateÎCoef Ai = ind sec i / total industrial wasteÎCoef bijk = treatment method k in waste j, industry i/ total treatment of industry iSimple structure of data source 2Inciner
ation

GEL

Land
fill

COM
Waste
In

Type

COM…

IND
CONS

Self
management

…

SPE

Dump
to seaothers

…
COM

reuse

…
Local
gov

…

In…

COM…
…

Outsidemanagement

firm

…

Land
fill
reuse
Dump
to seaothers…
…

Generation part

inciner
ation

Treatment part

Data sources 3 and problems
3. Waste Recycling Statistics (Korea Resource Corporation)
Industrial waste generation data by most disaggregated waste type
Reuse and Recycling data, unit: ton/year by KSIC- large andBut…
Missing industry: agriculture, forestry, mining, a lot service sectors
Need to calculateÎCoef aij = waste i in industry j/ total waste in sector jCompilation Korean Waste Flow Korea
T_indw
Ind (i)

T_indw * A(i)Indw(j)Ind(i)

Treat_A
Treat (k)Ind(j)

Indw(j)T_indw*A(j)*a(ij)*b(ijk)

T_indw * A(j) * a(ij)Recycling input link with commodities andsectors in Korea
TreatInd_wsectorswaste

A01

B01
B02

A02…

Self management

By gov…

recycling…

D-disposalΔ-…

Recycled waste commodity

B04…

A01a

A01b

A02…

B01

Substitution effects ->>

B02

-Δ

B02…

Commodities substituted by recycling goods
A01a
A01
sectors

A02
A03

A01b

A02…

-Δ

Used by input factor

Future work Fine Tuning of AIM/material Korea model Macroeconomic data with Waste in-flow
 Scenarios, Policy Implications

 Revision of Applied CGE modeling Substitution and non-linearized price effect Pricing of Material goods
 Elasticity of Substitution