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Articles

Managing Policy Dilemmas in South Korea: The Case of the Emissions Trading Scheme

 

Abstract

This paper analyses the policy dilemma of South Korea’s Lee Myung-bak government regarding the greenhouse gas Emissions Trading Scheme (ETS), the cornerstone of the government’s Low Carbon Green Growth (GG) policy. The paper analyses policy governance, with a focus on the deliberative nature of the policy process. The ETS was promoted as a way to overcome certain international, political and socioeconomic challenges facing the government, yet the process of its establishment featured severe confrontations between the stakeholders (industrialists and environmentalists), and a lack of effort on the part of the government to pursue deliberation with them, resulting in a significant policy dilemma. The government reacted passively at first, and later responded with a symbolic decision that failed to pursue deliberative processes and exacerbated the situation. This paper addresses the theoretical and policy implications of this policy process by identifying the mechanism that created the policy dilemma. The reliability and validity of the study are substantiated through a multi-strategy approach, including a review of the literature and an in-depth interview with a government economic official.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. Noksaekseongjangbijeon silcheon-i jungyohada (Green growth vision, practice is important). Hankook Ilbo, 16 August 2008; Galdeungkwa bunyeol numeo sunjinhanbando sidaero (Beyond the era of conflicts and division). Seoul Shinmun, 16 August 2008.

2. Noksaekseongjang ilnyun, tteungureuman jabatta (Green growth policy, building castles in the air). Kookmin Ilbo, 10 August 2009; Murihan noksaekjeongchaek-i bijeun pungryeok ki-eop-ui molak (Excessive green policy resulted in debt collapse of wind industries). Seoul Economy, 30 May 2012.

3. Some researchers view a policy network as a group of individuals and organisations that share similar belief systems, codes of conduct and established patterns of behaviour (Sutton, Citation1999, p. 12). This supports the view that members of policy networks usually have cooperative relationships based on their similarities. However, a “network” is also a kind of process that forms when individual actors establish relationships while maintaining their independence and interests (Im, Citation2000). This suggests that a policy network is more easily formed among actors who have different preferences, interests, aims or visions. This paper uses Peterson’s (Citation2003) definition of policy network to discuss policy dilemmas.

4. Interview, 20 August 2013, conducted via email with a senior staff member from a Korean government economic agency.

5. Interview, 20 August 2013.

6. www.assembly.go.kr, accessed 25 February 2015.

7. Interview, 20 August 2013.

8. Interview, 20 August 2013.

9. Webpage of the Presidential Committee on Green Growth. Available at www.greengrowth.go.kr, accessed 10 November 2012.

10. Webpage of the Ministry of Environment. Available at www.me.go.kr, accessed 10 July 2011.

11. Saneopgye baechulkwongeoraeje jolsok ipbeop bandae (Industrialists opposed to the quick introduction of the ETS). Asia Today, 29 December 2011.

12. Baechulkwon georaeje do-ip yeonki (Delay of the ETS). Edaily, 7 February 2011.

13. Interview, 20 August 2013.

14. Webpage of the Presidential Committee on Green Growth. Available at http://www.greengrowth.go.kr/?cat=35, accessed 21 August 2013.

15. Yidaetongryeong georaeje jeokjeolhan sijeom doip, yuyeonhage chujinhalgeot (President Lee mentions that ETS will be introduced at an appropriate time). Energy Economy, 8 February 2011.

16. Jeongbu onsilgas baechulkwon georaeje choejongan maryeon yeonki (The government defers decision on the introduction of ETS. Money Today, 9 February 2011.

17. Challenges ahead for carbon trade scheme. Korea Herald, 13 May 2012.

18. Major contents of enforcement ordinances include exact standards and methods for allocating permits and free permits, the percentage of free allocation, the authorities in charge, and the methods of reducing emissions of greenhouse gases before the introduction of the ETS. Thus, the scope and strength of regulations is easily influenced by each ordinance.

19. Webpage of Environmental Justice. Available at http://eco.or.kr, accessed 20 January 2013.

20. Onsilgas georaeje banjjok gieop-e baekpeosent musanghaldang (ETS, 100% free allocation to firms). Kyunghyang Shinmun, 23 July 2012.

21. Baechulkwonsihangryeong gongcheonghoe museum yaeki nawatna (Public hearing on Emission Trading Scheme). Energy and Environment News, 17 August 2012.

22. Interview, 20 August 2013.

23. Baechulkwon georaeje mukihan yeonkihara (Delay the ETS indefinitely). Hankook Economic Daily, 7 August 2012.

24. Jaegye tansobaechulkwon georaesiki 2020nyun ihuro yeonkihaeya jaecha yocheong (Industrialists keep demanding the extension of free allocation of emissions trading permits). Newsis, 15 January 2014.

25. Interview, 20 August 2013.

26. Shoots, greens and leaves. The Economist, 16 June 2012.

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