In this study, we attempt to analyze the future prospect of economic growth linked with various energy sector situations and policies.
This analysis is implemented by utilizing Vintage economic growth model which can reflect feedback effects between macro-economy and energy sector, and this approach is applied to Korean situations.
The model is composed of two submodels : the macro-economic submodel and the energy sector process submodel. These two submodels are linked by dynamic optimization process based on the general equilibrium concept.
The future prospect of Korean economy is simulated by this model. Sensitivity runs are made with respect to discount rate and the elasticity of substitution.