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Environmental Economics
Spring 2016
2015-24824 Hyunchul Park
Term paper Proposal
Study on New & Renewable Energy industry growth factor on
German and the United States.
Paris agreement notify end of fossil fuel energy and transition into the new & renewable energy. It is
important and crisis for the industrial world. In this situation, new & renewable industry have to strengthen
the competitiveness, which help the industrial world copping with Paris Agreement. Ultimately, growth of
the new & renewable industry is the method of survival in the new climate scheme and the solution.
But, growth of the new & renewable energy industry across countries is very different although the
importance of new & renewable energy is emphasized. In German, share in total electricity production, new
& renewable ratio of total power increased to 14% in 2009 from 3.47% in 2000. But, U.S increased to 3.85%
from 2.23%, U.K increased to 5.82% from 1.46% and Korea increased to 0.51% from 0.16% during the
same time (EIA Database).
What is the reason that these differences occur? This shows the existence of factors affect the growth of
renewable energy. Previous studies have found the main cause to such differences mainly in the policy
instruments. That is, the most common policy instruments for new & renewable energy such as RPS, FIT is
main issues (Magali, 2011).
It is difficult to explain the differences between countries in new & renewable energy supply with
considering only policy. Because 1) the country have adopted the same FIT and RPS are very different from
country to country in share of new & renewable energy in the total energy 2) Previous research studied the
effects of policy(FIT, RPS) without control variables such as energy governance and history (김태은, 2011).
So, this study will investigate the growth factor in industry of new & renewable energy on German and
United States. It is to apply to Korea policy and industrial strategy. Factors of this study are economic
variable, policy, social event, change of the party in the power and etc., (김계환 외, 2011). This study
investigate factor mostly. But analysis of factor will more focus on economic variable and other things rather
than policy. The Based on the analysis, I will confirm that which factor is more important to growth of the
New & Renewable Energy industry. Especially, focus on the perspectives of supply and demand. Analysis of
growth factor will divide into demand and supply from early stage to current. Because 1) New & Renewable
Energy industry deeply have relation with environment. Government have to create supply and demand
intentionally because environment market is seldom active spontaneously to change the goods. 2) New &
Renewable Energy change is not voluntary but unintended because of Paris agreement. So, the role of
government is important to expend the New & Renewable Energy industry with demand and supply. 3)
Industry do not growth without actual demand, although government carry out supply policy.
German is a frontier of new & renewable industry of the world and similar with Korean industrial structure.
Therefore, it has a many notable things for growth of industrial to apply to Korea. United states also frontier
of new & renewable industry and center of policy in the world. Especially, Korea is sensitive in changing
policy in the United states. So, it has many notable things too.(산업통상자원부, 2014)
Table of contents
1. Preface
2. Present condition of New & Renewable Energy industry
-German, United states
3. Supply
-economic variable, policy, events, etc
4. Demand
-economic variable, policy, events, etc
5. Policy Implication
6. Concultion
References
산업통상자원부, 에너지관리공단 신재생에너지센터, 2014, 신재생에너지 산업통계(2014 년판)
산업통상자원부, 에너지관리공단 신재생에너지센터, 2014, 신재생에너지 보급통계(2015 년판)
김계환 외, 산업연구원, 2011, 독일 녹색산업 발전요인과 한국의 정책과제
김태은 , 2011, 신재생에너지 성장의 영향요인 연구, 한국행정학회
Magali, A. Delmas, M. A. and Montes-Sancho, M. J. 2011, U.S State Policies for Renewable Energy :
Context and Effectiveness. Energy Policy
Tramber, T and Kemfert. 2009, ImpactImpacts of the German Support for Renewable Energy on Electricity
Prices, Emissions and Profits. The energy Journal