In this chapter, we build on the results from Chapter 2 and carry out an economic analysis of the impacts of reducing the shares of coal and nuclear power in the electricity sector’s fuel mix. Based on results from the E3ME model, we present impacts on key indicators, including GDP and employment, alongside the environmental impacts of the scenario.
We show that reductions in the use of nuclear and coal power would lead to higher electricity prices, which could have a negative socio-economic impact. However, the negative impacts are offset by increased investment in renewables and an improvement to trade balances through reduced levels of fossil fuel imports. The conclusion is that for the power sector it would be possible to reduce emissions substantially, while simultaneously increasing economic performance in East Asia.