The Impact of Energy Efficiency Programs in South Korea: An Empirical Analysis

Abstract

This research rigorously explores the intricate dynamics underlying household energy demand within the unique context of the South Korean economy. Employing empirical data, our study utilizes a robust structural time series model to conduct a thorough analysis of the factors influencing energy consumption patterns. Our findings illuminate a compelling positive correlation between household income and the demand for energy resources. This insight underscores the significance of economic factors in shaping the energy landscape within South Korean households. Additionally, our study delves into the nuanced relationship between energy prices and demand, revealing a discernible mitigating effect. This discovery suggests that fluctuations in energy prices play a crucial role in influencing and modulating household energy consumption. The implications derived from our research extend beyond mere academic discourse. The identified positive correlation between household income and energy demand serves as a pivotal point for policymakers. It prompts a reevaluation of existing strategies and calls for the development of a comprehensive approach to managing and controlling household energy demand in South Korea. As policymakers consider the multifaceted nature of these findings, they gain valuable insights to inform the design of effective strategies. Our research thus not only contributes to the academic understanding of household energy dynamics but also offers a practical roadmap for policymakers to craft informed and adaptive policies. This new direction holds the potential to shape the future of energy management in South Korea, fostering sustainability and resilience in the face of evolving economic and environmental challenges.