MARKAL (MARKet ALlocation) Model, one of the most sophisticated energy technology assessment model is applied to finding the optimum mix of energy sources and evaluating energy technology competitiveness in Korea. The model is capable of handling Multiple Objective Linear Programming to test the related cost minimization and environmental control function. In this paper three environmental regulation scenarios are observed including 10% and 20% reduction of carbon dioxide emission level. For the purpose of establishing the basic data base, Korea Reference Engergy System is also developed on the base of the year 1989 with technology utilization and energy flow analysis.