Leaving Someone Behind: Coal Phase-Out in South Korea

Abstract

This study estimates the effect of coal power plant phase-out on employment in South Korea. We employ difference-indifference estimators to infer causality. We find that the phase-out does not affect displaced workers at coal power plants in Seocheon. However, the changes had an unequal impact across industries. We also find a decrease in female and less educated manufacturing workers and an increase in male construction workers. These ripple effects highlight the winners and losers of the coal phase-out in Seocheon. The policy must be inclusive to ensure that no one is left behind.

Keywords: Coal phase-out, Employment, South Korea

JEL Classification: Q4, L1, L5, H4