Structural decomposition of industrial CO 2 emission in Taiwan: an input-output approach

Abstract

This study employs input-output structural decomposition analysis to examine emission trends and effects of industrial CO 2 emission changes in Taiwan during 1981–1991. Results indicate that the primary factor for the increase of CO 2 emission is the level of domestic final demand and exports; however, the effect of an increasing rate of added value is less obvious. On the other hand, the effects of a decreasing industrial CO 2 intensity is a main reducing factor, next is the structure of domestic final demand, and the rate of domestic production to intermediate input also has partial reducing effects for CO 2 emission. Besides, the structure change of exports has only low reducing effects. Results presented herein can provide valuable information regarding the characteristics and key factors of CO 2 emission in the industrial development process. This information can also serve as a basic reference for the CO 2 reduction plan in Taiwan.