The relationship between industrial development and the environment in a modern economy is largely regarded as negative. The important features in the relationship are the generation of pollutants/waste and its control activities, which are either reactive or proactive. The reactive control activities are related to regulation. Beside, there exist relevant reactive and proactive policies, such as environment-industrial policy and national R&D strategy to promote environmental technology.
A system dynamics model is applied for understanding such activities and policies in Korea. The relevant studies, therefore, are surveyed and many pieces of evidence are suggested in order to build and simulate the model. Dynamic behavior of the model has been sought through verifying the causality model and the reference mode, and also sensitivity analysis has been performed.
The dynamic behavior confirms the fact that promptly strengthened regulation in Korea be necessarily followed by the policy that can deliver proper supply capacity in the pollution control sector. And it can be stated that the diffusion of clean technology ultimately reduces the pollution control activities, such that the negative relationship between industrial development and the environment is expected to be changed into positive. The conclusion of this thesis provides this point of view as well as the policy suggestion: Just-in-time supply of derived factors(technological manpower, and etc.) in the pollution control sector in a relatively short term, and technology-push strategy for the clean technology in a long term.
