Analyzing the Driving Forces behind CO2 Emissions in Energy-Resource-Poor and Fossil-Fuel-Centered Economies: Case Studies from Taiwan, Japan, and South Korea

Yun-Hsun Huang,Jung-Hua Wu,Hao-Syuan Huang

doi:10.3390/en14175351

Abstract

Based on the strong similarities between energy-resource-poor and fossil-fuel-centered economies (e.g., Taiwan, Japan, and South Korea) in terms of economy, culture, and energy usage characteristics, they should be analyzed collectively. This study adopted two-tier input-output structural decomposition analysis to identify the driving forces behind CO2 emissions to these countries to the formulation of effective environmental policy. Data from the World Input-Output Database was used to decompose relative changes in CO2 emissions into a range of technological advances, factor substitution, and final demand effects. Technological advances in energy (direct) contributed to a 77% reduction in Taiwan and a 34% reduction in South Korea. This is a clear indication that improving energy efficiency via technological advances should be a priority. In Japan in particular, there was a 22% reduction in CO2 emissions attributable to technological advances in materials; hence, it is recommended that Taiwan and South Korea work to extensively develop eco-industrial parks to create industry clusters to promote resource/energy efficiency and reductions in CO2 emissions. Decomposition results based on factor substitution revealed that a variety of strategies will be required, such as switching to fuels that are less carbon intensive, promoting the adoption of renewable energies, and implementing clean-coal technologies.

Highlights

The effects of climate change can be observed across the globe, and there is compelling scientific evidence indicating that most of the effects are anthropogenic
Between 2004 and 2014, CO2 emissions in Taiwan increased by 7%, most of which can be attributed to the burning of fossil fuels
Factor substitution led to a 15% increase in CO2 emissions and increased exports led to a 7% increase (Table 2)

Summary

Introduction

The effects of climate change can be observed across the globe, and there is compelling scientific evidence indicating that most of the effects are anthropogenic (i.e., related to human activity). The accumulation of greenhouse gases in the atmosphere due to the burning of fossil fuels is a prime culprit in elevated surface temperatures. This in turn leads to impacts such as shifting seasons, rising sea-levels, the disappearance of Arctic sea-ice, and heat waves of higher intensity. Japan, and South Korea lack indigenous energy resources and depend on imported fossil fuels. Fossil fuels (i.e., coal, oil, and natural gas) make up approximately 75 percent of the total primary energy supply in Japan and South Korea and 90 percent in Taiwan [1], resulting in high CO2 emissions. Note that the per capita emission of CO2 in Japan, Taiwan, and South

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Discussion

Conclusion