1. Carbon neutral policy and implementation risk
1.1. Definition and classification of carbon neutral implementation risks
In this study, carbon neutral implementation risk is defined as the potential impact that may arise from implementing carbon neutral policies, such as climate change mitigation and adaptation. In particular, in this study, based on previous research, carbon neutrality implementation risk was broadly divided into ‘implementation process risk (IR)’ and ‘implementation result risk (CR)’ in terms of stages. Process risks are risks that arise in the process of carbon neutrality implementation and include uncertainties in the implementation and goal achievement of carbon neutral policy, technology development, and system conversion. Resultant risk refers to the negative impacts on the ecosystem, humans, health, economy, society, and environment that may arise from the implementation of carbon neutral policies in terms of the results of realizing carbon neutrality.
1.1. Carbon neutral policy status
As a representative carbon neutral policy, mid- to long-term greenhouse gas reduction measures by sector in the 1st Carbon Neutral Green Growth Basic Plan were mainly identified. In order to match the detailed policies of the basic plan with specific strategies and goals for each sector, the 'Electricity Supply and Demand Basic Plan' was established in the transition sector, the '2050 Agri-food Carbon Neutral Promotion Strategy' was implemented in the agricultural sector, and the 'Achieve 2050 Carbon Neutrality' in the forestry sector. In the water resources sector, the 'Water Management Field, Public-led Bold 2050 Carbon Neutral Strategy' and the 'K-water 2050 Carbon Neutral Roadmap' are being implemented. Reviewed.
1.2. Implementation risks of carbon neutral policy
Risk factors related to carbon neutrality implementation are very diverse, including greenhouse gas emissions, energy demand, energy prices, power generation mix, food demand, GDP, investment, agricultural demand, agricultural production, land cover, policy (administrative) costs, and trade. To encompass this, the implementation risk of the carbon neutral policy was previously divided into two risks (process and result), and the impact sector was divided into social, economic, environmental, policy, technology, and health aspects. For example, from an economic aspect, there is an increase in electricity rates, from a social aspect, there is conflict between coal-fired power plant workers and local residents, from an environmental aspect, there is a reduction in air pollutant emissions, and from a technical aspect, grid output instability due to intermittency of renewable energy, policy issues, etc. On the aspect, regulatory environmental risks such as environmental impact assessment can be reviewed, and on the health aspect, impacts such as reduced ability of low-income groups to respond to extreme climate events and increased risk exposure can be reviewed.
1.3. Policy scenarios for implementation risk analysis
In order to derive a policy scenario that analyzes the distribution path of carbon neutral implementation risks, we first drew the impact path for each sector according to carbon neutral policy implementation. Representative policies for each sector directly affect that sector and indirectly affect other sectors. Among various reduction implementation strategies, one policy that shows the impact path across all sectors is the expansion of renewable energy, and this was derived as a common policy scenario.
2. Analysis of carbon neutrality implementation risk impact by sector
2.1. Energy
The expansion of renewable energy is essential for the transition to carbon neutrality in the power sector, but it may have the effect of increasing the instability of power supply and demand due to intermittency, making it difficult to predict power production. If the supply of new and renewable energy increases excessively compared to the demand for electricity, output restrictions must be implemented to prevent power produced through new and renewable energy from entering the power grid to maintain the stability of the power grid, which leads to an increase in the cost of operating the power system. In addition, there is a risk that the instability of power frequency and voltage may increase if the proportion of renewable energy increases in the future carbon neutral transition process. Considering this aspect, there is a need to secure flexible resources to compensate for the intermittency of renewable energy. In addition, the current cost of domestic renewable energy generation is relatively high compared to other countries and other power sources, and supply growth is still limited. On the other hand, the rapid increase in companies' demand for renewable energy power due to recent RE100 may lead to an increase in companies' renewable energy purchase costs.
From a policy perspective, new and renewable energy support policies such as subsidies and technology development support can also have the effect of lowering future power generation costs by accelerating the development of new and renewable energy technology, thereby lowering electricity prices. Although this may have a positive effect, inconsistent renewable energy support policies may also hinder the expansion of renewable energy.Investment in renewable energy has a high initial investment cost and is structured to be recovered over a long period of time, so continuous investment in renewable energy will be possible only when a long-term stable and consistent renewable energy support policy is presented. In addition, the current complex licensing procedures and resident conflicts are factors that impede the expansion of renewable energy and need to be resolved to achieve carbon neutrality.
2.2. Water resources
As a policy implication to reduce the ‘implementation risk’ that occurs at the present time, we would like to first suggest ways to strengthen social acceptance by utilizing the co-creation approach. The participation of various stakeholders is necessary to reduce distrust in technological innovation and to realize it effectively. For an example of such active participation and joint discussion, refer to the Austrian Steel and Power Sector Transformation Project, which designed policy and technology development simultaneously. (Bachner et al., 2020). In addition, by connecting renewable energy microgrids and energy storage systems, power system stability can be secured, and local power generation sources can be diversified, such as small hydro power generation and floating solar power grid connection. In addition, an approach is needed to implement regionally tailored energy independence policies.
Measures to reduce ‘consequential risk’ that occurs in the future should consider providing financial incentives, price stabilization policies, and improving the post-environmental impact assessment system. By utilizing an economic model in which local residents participate, carbon-neutral energy conversion can be used as a means to revitalize the local economy, creating synergy. In the case of Imha Dam floating solar power, a plan was prepared to increase acceptance by providing economic benefits to the local community through a resident participation-based profit sharing model. In addition, standardized evaluation standards for each renewable energy source must be established through improvement of the post-environmental impact assessment system. In order to revise policies and prepare alternatives based on post-monitoring and evaluation results, it is essential to improve legal authority and institutional procedures to respond to unexpected environmental changes.
2.3. Agriculture
Agricultural solar power, unlike existing farmland-dedicated solar power, is a means of achieving energy production and farmland conservation at the same time, and policy interest in this is increasing. In addition, considering the structural rice surplus problem in the country, the reduction in rice production due to agricultural solar installation is expected to have a minimal impact on actual food security, rice prices, and consumer welfare. Accordingly, in this study, based on literature research, the risks of expanding agricultural solar power were summarized as shown in the figure below, excluding the impact on the overall economy such as food security and prices. Specifically, in this study, based on literature research, factors that may present risks in the current expansion of agricultural solar power include conflict with agricultural land use regulations, reduction of support policies such as the Korean FIT system, increased production costs due to installation of agricultural solar power, It was identified as a decrease in agricultural productivity/quality, deepening regional concentration, increase in agricultural equipment qualifications, and damage to agricultural environmental resources.
In addition, a decrease in farm household income was selected as a ripple effect of the risk of expansion of agricultural solar energy mentioned above. This is due to insufficient agricultural solar power operation period due to farmland use regulations, fluctuations in electricity sales prices, and increased production costs due to changes in macro variables such as increased separation distance and interest rates due to regional concentration, which have a negative impact on the income of farms installing agricultural solar power. Because it is certain that it will have an impact. Lastly, the damage to agricultural environmental resources and the increase in farmland prices due to the expansion of agricultural solar power are expected to increase negative perceptions of agricultural solar power and act as an obstacle to policy expansion.
2.4. Forest
Renewable energy is an important alternative for carbon neutrality and environmental protection, but the expansion of wind power generation in forested areas entails various environmental, social, and economic risks. Problems such as forest damage, ecosystem disturbance, noise, and landscape damage that occur in the process of building wind power farms in mountainous areas show the conflict between the expansion of renewable energy and forest protection. These issues may conflict with the policy goal of protecting forests while expanding renewable energy, and more careful planning and coordination are needed for sustainable development.
Measures are needed to minimize forest damage and ecosystem disturbance that occur during the installation of wind power plants in mountainous areas. To this end, the location of the wind power generation complex must be carefully selected and technological alternatives that can mitigate environmental damage caused by wind power generation must be actively introduced. Communication and cooperation with residents must be strengthened to solve problems such as noise and landscape damage caused by wind power generation facilities to local residents. It is important to establish a compensation policy for residents in affected areas and increase the social acceptability of renewable energy projects through their participation. In particular, in the case of Korea, there are no specific regulations regarding the appropriate distance between private houses and wind power generation complexes and it remains at the recommendation level, so establishing a firm legal standard for this should be a priority.
Ecosystem protection measures must be strengthened to reduce the negative impacts of wind power generation on wildlife habitats. It is necessary to introduce a monitoring system to reduce damage to migratory animals and avoid installing power plants in areas where damage is likely to occur.
2.5. Health
The health impacts of renewable energy expansion may have somewhat different results at the universal and local levels. Generally, renewable energy is expected to reduce climate disasters such as heat waves and droughts by mitigating climate change and reduce the incidence of respiratory and cardiovascular diseases by improving air quality. These changes contribute to reducing excess mortality overall and can have a positive impact on disease prevention and health promotion. For example, research has shown that reducing the concentration of fine dust (PM2.5, PM10) can suppress the occurrence of major diseases such as asthma and cardiovascular disease.
On the other hand, negative impacts exist at the general level as well. Volatility in electricity prices and water costs due to the expansion of renewable energy can have a negative impact on economically vulnerable groups. In particular, energy-poor people are at risk of worsening health as they are unable to maintain proper cooling and heating during heat waves and cold weather due to rising electricity costs.
At the local level, the expansion of renewable energy has various consequences. In some rural areas, the construction of solar power plants is causing conflict among local residents, which has the potential to weaken community solidarity and reduce disaster response capabilities. In the case of wind power generation, research exists that environmental factors such as low-frequency noise can cause health problems such as sleep disturbance and increased stress in nearby residents. In addition, soil erosion and water pollution that may occur during the installation of wind power plants can have a negative impact on the ecosystem and human health, which is likely to lead to long-term reductions in agricultural productivity and food security issues.
3. Analysis of transmission route and policy acceptability considering carbon neutrality implementation risk
3.1. Dissemination route considering carbon neutral implementation risk
The expansion of renewable energy generation facilities involves uncertainty in the implementation phase. Examples include lack of consistency in renewable energy policies, delays in transmission and distribution network installation, and intermittency issues. Agricultural solar power, floating solar power, onshore wind power, and offshore wind power are all vulnerable to uncertainties related to renewable energy policies and physical external influences such as typhoons, so these factors commonly served as major nodes. The problem of renewable energy intermittency leads to instability in power supply and demand, which leads to rising prices and negative health impacts on vulnerable groups. Meanwhile, expansion into renewable energy increases support for it and increases the proportion of renewable energy generation, which relatively reduces the proportion of thermal power generation and ultimately causes positive health effects. At the same time, there may be a positive effect of accelerating technological development and lowering electricity prices.
When looking only at the expansion of agricultural solar power, it is understood that negative impacts such as increased product costs and increased farmland prices are concentrated in the agricultural sector. It was found that the expansion of onshore wind power leads to ecosystem disturbance due to deforestation and disruption of migratory bird migration routes, leading to forestry and ecosystem issues being identified as major problems. The expansion of floating solar power has had a noticeable impact on the marine ecosystem, and it appears that negative impacts on fisheries may also occur. Water pollution and the impact on the surrounding ecosystem related to the expansion of offshore wind power were identified as major nodes.
All renewable energy power generation facilities ultimately led to worsening health and conflict issues for community members. The expansion of agricultural solar power and floating solar power commonly cause damage to the environment, which ultimately leads to community conflict issues, while the expansion of onshore and offshore wind power appears to commonly generate noise and cause mental illness problems. In addition, as power generation facilities expand, certain industries or sectors may take a hit, leading to a decrease in income. This phenomenon is very similar to the results obtained when Park Joo-young et al. (2023) analyzed the propagation path of climate risk. In other words, carbon neutral policies are being established and implemented to cope with the negative impacts of climate risks, but negative results inevitably occur due to these policies. This appears to require a balanced approach to solve the complex economic, social, and environmental problems caused by carbon neutral policy.
3.2. Carbon neutral policy acceptability analysis
We conducted a perception survey targeting 500 people who have heard of carbon neutrality to determine the general public's understanding, trustworthiness, degree of impact, and possibility of carbon neutrality policies, and through this, we conducted a survey on climate change risk adaptation considering policy acceptability. We aim to provide basic data to suggest capacity building measures.
Regarding the possibility of achieving ‘2050 carbon neutrality’, 30.2% of respondents responded ‘high’ and 61.2% responded ‘low’, indicating that they evaluated the possibility of achieving it as low. The achievability evaluation was analyzed as 2.23 points on average out of 4 points. Women (2.30 points) rated the possibility of achievement somewhat higher than men (2.16 points), and by age, those over 60 (2.37 points) rated it highest, followed by those in their 30s (2.30 points) and those in their 20s (2.20 points). It appeared. When looking at the area of residence, respondents living in the Chungcheong/Gangwon area rated the possibility of achievement highly, while respondents in the metropolitan area rated it the lowest.
In order to achieve '2050 carbon neutrality', most people said that the 'energy sector such as coal-fired power generation' is important, followed by 'waste sector such as garbage incineration', 'transportation sector such as vehicle operation', and technological innovation such as 'hydrogen and CCUS'. Appeared in the order of sector, etc. It was found that men considered the ‘energy sector, such as coal-fired power generation,’ as the most important, while women considered the ‘waste sector, such as waste incineration,’ to be the most important. By age, most people considered the role of the energy sector to be the most important, while those in their 20s considered the waste sector to be relatively more important, and those in their 30s considered technology development such as hydrogen and CCUS to be relatively more important. Additionally, as age increases, opinions that the role of the energy sector is important tend to increase.
In order to achieve '2050 carbon neutrality', the most important government role at the moment was that 'the legal and institutional basis for implementation, evaluation, and monitoring of carbon neutrality and greenhouse gas reduction policies must be strengthened', followed by 'We must create many diverse opportunities where all citizens can easily and actively participate', and 'We must increase the carbon neutral budget and raise policy priorities', etc. Based on the first priority, men were most likely to say that 'the carbon neutral budget should be increased and policy priorities should be increased' as the most important government role at this point in order to achieve '2050 carbon neutrality', while women were most likely to say 'carbon neutrality and greenhouse gases by sector'. The most common opinion was that the legal and institutional foundation for implementing, evaluating, and monitoring gas reduction policies should be strengthened. By age, those in their 20s and 60s said, 'We need to create many diverse opportunities where all citizens can easily and actively participate,' those in their 30s and 50s said, 'Strengthen the legal and institutional base,' and those in their 40s said, 'Increase budget and raise policy priorities.' appeared to have the most responses.