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This study employs input-output structural
decompositionanalysis(SDA) and fuzzy goal programming(FGP) to
establish amodel for tracing the interrelationship between
energyconsumption and CO2 reduction in Taiwan. This research
aimsto identify the characteristics and key factors of CO2
emission during 1981-1994 by using SDA, and then
toconstruct the input-output FGP model for
elaboratingfeasible CO2 reduction strategies and to evaluate
economicgrowth, industry structure, energy demand, and CO2
emissionfor different scenarios. Results presented herein
bydecision support system(DSS), can be of value to
relevantagencies in reducing CO2 emission and enhancing
industrialdevelopment in Taiwan. The major findings of this
study are summarized asfollows:1. The results of input-output
SDA indicate that the highwayand steel & iron sectors are
identified as the mostsignificant industries which cause CO2
emission, and shouldbe targeted as major industries for CO2
reduction. As forthe other industrial chemicals sector,
because its CO2intensity ranked at the top for all
industries and isincreasingly serious, this sector should
not be consideredfor increased investment or enlargement in the
future. Thecement industry is also a major source of CO2 emissi
on fromthe fuel combustion as well as in the production
process;therefore, it may be necessary to increase the cement
importrate appropriately in the future.2. Coal consumption has
the greatest impact on CO2 emissionin Taiwan; therefore, raising
the price of coal proportionalto achieve feasible energy
conservation technologies isrecommended as the top priority
among other regulatingenergy price strategies.3. As for
carbon taxes, further investigation is needed toestimate
various ranges of carbon taxes in order to matchthe specific
needs and energy saving potential in variousphases for
individual industry.4. Electricity has increased rapidly
among all energysources. It is suggested that electric
plants shouldincrease the share of non-fossil fuel and
natural gas andcontinue to improve energy efficiency for
reducing CO2emission and enhancing industrial development in
Taiwan.5. The results of this study indicate that the
combinationstrategies, including upgrading the industry
structure andimposing appropriate energy or carbon taxes,
are moreeffective in gaining economic growth,
industrialcompetitiveness, energy saving and reducing CO2
emissionthan are the discrete CO2 reduction strategies. This
studycan be of valve to our government in constructing
strategiesfor FCCC(Framework Convention on Climate Change) to
reduceCO2 emission and upgrade the industrial structure for
better energy and economic bases.
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