COMPARISON OF RENEWABLE ENERGY INDUSTRY'S GROWTH
POTENTIAL BY COUNTRY USING OECD INDUSTRY'S INPUT-OUTPUT
TABLES
Dongjun Lee, Seoul National University, Phone +82-2-880-8284, E-mail: mjun@snu.ac.kr
Eunnyeong Heo, Seoul National University, Phone: +82-2-880-8284, E-mail: heoe@snu.ac.kr
Overview
The increase in cost for using fossil fuel and deepened problem of climate change are increasing the motive
toward the development of renewable energy. Especially in recent days, the developed countries as well as nonOECD countries that would seem to lead the increase of energy demand are planning a large scale investment to
raise renewable energy industry. In such aspect, it seems certain that the renewable energy would grow
considerably throughout the world. But in many countries, the renewable energy is still not an economical and
must be developed further. Therefore, it is necessary for each country to invest by selecting relatively the most
economical renewable energy considering the natural environment and technological standard.
In this study, the growth potential of renewable energy industry has been compared by analyzing the
industries committed for the development of renewable energy using the input-output tables published by
OECD. To make this possible, the study is made up of three main parts. First is the classification on renewable
energy commitment industry. In current OECD input-output tables, the renewable energy industry has not been
defined separately. Therefore, we can only analyze indirectly through related industries in order to analyze the
renewable energy industry. In this study, the key industries committed for creating renewable energy industry
has been investigated through literary research and this has been re-classified according to the industrial
classification of OECD input-output tables. The second is the analysis on economical effect of investment on
industries classified above on each country. Generally, as the economical far reaching effect on corresponding
industry becomes greater, the investment factor on that industry will become higher. Third is the analysis of
association rule by industry using clustering. Such analysis has been performed under the assumption that the
creation and growth of renewable energy industry would also become easier if each industry has high connected
relations because renewable energy industry is accomplished by harmony of each key industry.
Methods
Input-Output Analysis, Cluster Analysis
Results
First, the committed industries have been organized by adjusting to the OECD industrial classification by each
renewable energy source.
Second, we have attempted to select the renewable energy with high investment motive by country
Third, the degree of connection by renewable energy commitment industry has been compared by country and
this has been compared once again by classifying into OECD countries and non-OECD countries. But it didn't
show a remarkable huge difference and a verification seems necessary later on for the significance of such
results.
Conclusions
In this study, we have tried to research on the growth potential of each renewable energy industry by country
after analyzing far reaching economic effects of investment on key renewable energy industries and the degree
of connection between industries. Such study would have to be organized again considering natural conditions of
the future and current technological standard, etc. But the result is estimated to have significance from the fact
that it can provide a policy-oriented implication for raising the renewable energy industry by analyzing the
investment priority and connected relationships under current economic structure.
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