Energy assistance to North Korea

More about the book

On February 13, 2007, North Korea agreed to dismantle its nuclear program in exchange for security guarantees and energy assistance, specifically up to the “equivalent of one million tons of heavy fuel oil.” This study examines various energy assistance options through domestic and international political analysis and economic cost-benefit analysis, factoring in health and environmental externalities to address latent social costs. The research suggests that a comprehensive energy assistance package, incorporating renewable energy sources like wind, small-hydro, and tidal power, along with the rehabilitation of existing hydro power plants and grid systems, would sustainably benefit North Korea's energy sector and economy. In the medium term, light water nuclear reactors may be necessary to finalize the dismantlement process. However, in the long run, as the advantages of renewable energies grow, a diverse portfolio of these sources could revitalize the economy while promoting public health and environmental well-being. Additionally, the study highlights Cuba's experience in overcoming a food and energy crisis as a case study, offering valuable lessons for policymakers aiming for a sustainable trajectory.