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Economic Growth, Carbon Abatement Technology and Decoupling Strategy – The Case of Taiwan

Category: Control Techniques and Strategy

Volume: 17 | Issue: 6 | Pages: 1649-1657
DOI: 10.4209/aaqr.2016.11.0487
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Chien-Ming Lee, Ever Romel Rosalez

  • Institute of Natural Resource Management, National Taipei University, Taipei 23741, Taiwan

Highlights

A 2.4% energy intensity decrease achieves absolute decoupling by 2020 in Taiwan.
High-energy price incites energy efficiency and result in decoupling.
Energy efficiency should be the targeted through an early action approach.


Abstract

Greenhouse Gas (GHG) emissions decoupling from economic growth are imperative goals for sustainable development. This study combines decoupling index and Log Mean Divisia Index (LMDI) to study which major transformation is required in the way energy is produced, delivered and consumed in order to achieve decoupling in Taiwan. The results indicate that a high-energy price can improve the energy structure by inciting energy efficiency use and result in decoupling CO2 emissions from economic growth. Targeting CO2 emissions through early action is the best approach to acquire decoupling. An annual energy intensity decrease of 2.4% is key for Taiwan to achieve absolute decoupling by 2020. The study suggests that the Taiwan government should focus on energy efficiency through investing in clean energy innovation at an early phase. Taiwan should consider national policies that are sensitive to effective economic strategies that enhance research and development and also invest in promoting energy efficiency in the economy-wide.

Keywords

Decoupling Energy efficiency Economic growth Early action CO2 emissions


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