The Korean government plans to promote environmental industry actively as setting up a policy goal of emerging in the world best seven green powers until 2020 and pursuing the economic growth and environmental conservation according to the vision of ‘green growth.’ Under the current circumstances, the Ministry of Environment plans to invest 271.9 billion won for promoting environmental industry projects including 40 billion won for environmental reform fund financing and 206.1 billion won for environmental technology R&D in 2011.
However, the environmental technology R&D projects has some problems such as duplication of R&D projects with other departments and ineffective actual goal achievement. This report, therefore, evaluates the projects such as environmental improvement project (loan) and environmental technology R&D project on which government is spending heavily in terms of operation appropriacy and a goal achievement as compared to the amount of financial investment. It also estimates relative efficiency of the environmental technology R&D projects and pollution reduction impact on environmental reform fund financing by conducting Data Envelopment Analysis (DEA) and Statistical Analysis including t-test.
These evaluations have shown several significant features as follows. The analysis presents some problems such as lack of data accumulation on essential pollution emission for effective management, follow-up control procedures, and performance evaluation. Additionally the measurement formulas and methods of performance indicators are different from actual calculation methods on the performance report. Moreover, there exists ineffective performance evaluation system and R&D project management. From those reasons, it was taken for granted that final assessment on this project would be mere formality, further undermined procedure. Furthermore, cooperative strategies between environment technology R&D and other environmental projects need to be improved. As a result, domestic environmental enterprise cannot participate in construction projects of environmental infrastructure including waste treatment facilities.
Based on the evaluation, this report suggests several policy recommendations. Firstly, the Korean government should collect the measurement data of pollutant emission from loan support organization in order to efficiently operate the business of prompting environmental industry and improve
the better performance outcomes, thereby evaluating the actual outcomes and improving the system of performance evaluation. Secondly, the Korean government should set up specific evaluation criteria for the environmental technology R&D project. Lastly, environmental technology R&D plan should go alongside with the improvement of other environmental strategy, policy and system, which includes introducing order separation system for environmental infrastructure construction project.
However, the environmental technology R&D projects has some problems such as duplication of R&D projects with other departments and ineffective actual goal achievement. This report, therefore, evaluates the projects such as environmental improvement project (loan) and environmental technology R&D project on which government is spending heavily in terms of operation appropriacy and a goal achievement as compared to the amount of financial investment. It also estimates relative efficiency of the environmental technology R&D projects and pollution reduction impact on environmental reform fund financing by conducting Data Envelopment Analysis (DEA) and Statistical Analysis including t-test.
These evaluations have shown several significant features as follows. The analysis presents some problems such as lack of data accumulation on essential pollution emission for effective management, follow-up control procedures, and performance evaluation. Additionally the measurement formulas and methods of performance indicators are different from actual calculation methods on the performance report. Moreover, there exists ineffective performance evaluation system and R&D project management. From those reasons, it was taken for granted that final assessment on this project would be mere formality, further undermined procedure. Furthermore, cooperative strategies between environment technology R&D and other environmental projects need to be improved. As a result, domestic environmental enterprise cannot participate in construction projects of environmental infrastructure including waste treatment facilities.
Based on the evaluation, this report suggests several policy recommendations. Firstly, the Korean government should collect the measurement data of pollutant emission from loan support organization in order to efficiently operate the business of prompting environmental industry and improve
the better performance outcomes, thereby evaluating the actual outcomes and improving the system of performance evaluation. Secondly, the Korean government should set up specific evaluation criteria for the environmental technology R&D project. Lastly, environmental technology R&D plan should go alongside with the improvement of other environmental strategy, policy and system, which includes introducing order separation system for environmental infrastructure construction project.
Kim Sangwoo