• Journal of Energy Engineering
• /
• v.20 no.1
• /
• pp.63-76
• /
• 2011

This paper studies the impact of Korean introduction of the Generalized System of Preferences(GSP) to developing countries, which are continuously arguing to support research and development for reducing greenhouse gas(GHG) emission with developed countries in the Conference of the Parties(COP) of UNFCCC. This paper is focusing on the expecting effects of trade and GHG emission reduction when Korea provides GSP to Indonesia, Brazil, and Ethiopia, which are selected in the first session of Global Green Growth Institute(GGGI). This paper uses the methodology of the intra-industry trade index multiplied by Korean import-induced coefficients. To Indonesia, Korean probable GSP would benefit exports of Indonesian agriculture, forestry, fishery, and livestock farming industries, which would contribute to Indonesian reduction of GHG emission. To Brazil, the exports to Korea would increase in the GHG sensitive industries such as metal, fat, oils, food, and beverage industries. Ethiopia belongs to the least developed countries. So Korean GSP would support the exports and GHG reduction in Ethiopian agriculture, forestry, fisheries, textiles, and leather industries. Without conflicting most favored nation treatment(MFN) principle in WTO, the introduction of GSP would be a good compensation for GHG reduction to developing countries.