The impact of mitigating CO2 emissions on Taiwan's economy

In this paper, a computationally multi-objective programming approach and a Leontief inter-industry model are used to investigate the impact of mitigating CO2 emissions on Taiwan's economy. The estimated result shows that Taiwan's GDP will drop 34% off the targeted GDP growth rate for the year 2000 and Taiwan's economy will be seriously weakened if annual CO2 emissions are stabilized at the 1990 level. When Taiwan maintains CO2 emissions at 128% of the 1990 level, then Taiwan's economy will be able to show a 5.37% average annual growth rate up to year 2000 a 157% CO2 emission level would mean a 5.92% annual GDP growth rate; and a 213% CO2 emission level for a 6.85% annual GDP growth rate. In addition, policy implications are presented in order to provide policy makers in economic planning. (C) 2001 Elsevier Science B.V. All rights reserved.