Effect of Depreciation Method for Long-Term Tangible Assets on Sustainable Management: From a Nuclear Power Generation Cost Perspective under the Nuclear Phase-Out Policy

The Korean Government has been implementing a nuclear phase-out policy since 2017. Nuclear power plants accounted for 30.0% of the total generation in 2016; this figure fell to 25.9% at end 2019, and average Capacity Factor (CF) plant approximately dropped from 89.1% 69.2%. presents severe consequences sustainable management industry. Accordingly, purpose study is analyze effect decrease capacity factor under on depreciation cost per unit using Straight-Line Method (SLM) Decelerated Depreciation (DDM) provide recommendations perspective. results show that CF negative impact development DDM more beneficial than SLM during initial stage policy. In addition, early stages projects or immediately after attracting large-scale investments, can offer positive signs stockholders by calculating smaller net loss higher profit.