THREE ESSAYS ON ENVIRONMENTAL SHOCKS AND POLICY RESPONSE

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2023

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This dissertation analyzes the economic effects caused by exogenous shocks and focuses on discussing the mechanisms behind them. Though this dissertation does not deal with only one specific topic, each topic may provide valuable insights for policymakers to establish efficient environmental policies in various fields. Chapter 2 is related to the effect of the expiration of the Korea-Japan Fishery Agreement (KJFA) on Korean long-line hairtail fishery. Since the agreement expired on June 30, 2016, the Korean and Japanese fishing vessels cannot enter the mutual EEZs. The main reason for the expiration is the significant difference of view about the number of Korean long-line hairtail fishing vessels and their catches in Japan’s EEZ. This chapter analyzes the impact of the expiration using the catch data of Korean long-line hairtail fishing vessels. Chapter 3 analyzes the relationship between earthquakes and housing prices. In particular, this chapter focuses on the housing price near a nuclear power plant (NPP) which is the Gori NPP in Korea. By doing so, this chapter addresses how the housing market values the risk of the NPP using two different exogenous shocks, one is the Fukushima accident in Japan (2011) and another is the Pohang earthquake in Korea (2017). Lastly, Chapter 4 covers the effect of the low emission zone (LEZ) policy on air quality in Seoul, Korea. The LEZ policy has been led by the EU and the main purpose is to prohibit driving old diesel vehicles. Many previous studies support the effectiveness of the policy. However, the purpose of this chapter is to verify the policy effect in Seoul where the air quality is significantly affected by China. Moreover, this chapter handles the cost-benefit analysis of the policy focusing on the secondary PM10 formation caused by the reduction of NO2.

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Economics, Environmental economics, air pollution, earthquake, fishery agreement

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94 pages

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