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

Abstract

This study investigates household energy demand in South Korea using a structural time series model to analyze influencing factors. The findings reveal a positive correlation between household income and energy consumption, highlighting economic factors as key drivers of household energy use. Additionally, the study identifies a mitigating effect of energy prices on demand, indicating that fluctuations in energy prices influence household consumption patterns. These insights provide valuable implications for policymakers in managing household energy demand. The positive correlation between income and energy demand suggests the need for strategies that promote energy efficiency without restricting economic growth. Policymakers should consider measures such as energy pricing mechanisms, efficiency incentives, and awareness programs to balance consumption and sustainability. The mitigating role of energy prices implies that well-designed price regulations can help control demand while ensuring affordability. Strategic planning is necessary to prevent excessive energy use while maintaining economic stability. By incorporating these findings, policymakers can design adaptive policies that address both economic and environmental challenges. Effective energy management strategies can enhance sustainability and resilience in the South Korean economy. Policymakers should focus on integrating energy-efficient technologies, renewable energy adoption, and regulatory frameworks that promote sustainable consumption habits. The study underscores the need for a holistic approach to household energy demand management. Future research should explore additional factors influencing consumption patterns, such as demographic changes, technological advancements, and policy interventions. A well-informed strategy can contribute to long-term sustainability and economic stability in South Korea’s energy sector.