Trade pattern change impact on industrial CO 2 emissions in Taiwan

Abstract

Input–output structural decomposition analysis (I–O SDA) is applied in this paper to analyze the sources of change in industrial CO 2 emissions in Taiwan from 1989 to 2001. Owing to the fact that Taiwan is an export-oriented, trade-dependent economy, the focus is on trade transformation over the past decade and its effect over industrial CO 2 emissions. Change in trade patterns has significantly impacted many aspects of the Taiwan economy, subsequently resulting in various influences on industrial CO 2 emissions, as shown by empirical analysis results. Change in export level increased industrial CO 2 emissions, above all other effects, by 72.1%. However, changes in export mix and import coefficients imposed effects of dragging down industrial CO 2 emissions by 5.7% and 11.7%, respectively.