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Decomposition of SO2, NO1 and CO2 Emissions from Energy Use of Major Economic Sectors in Taiwan

Abstract:
In this paper we use the Divisia index approach to decompose emission changes of SO2, NOx and CO2 from major economic sectors in Taiwan during 1980 to 1992. The study highlights the interrelationships between energy use and environmental quality, and provides insights for policy making. The emission changes are decomposed into five components-pollution coefficient, fuel mix, energy intensity, economic growth and industrial structure. Of all components analyzed, economic growth had the largest positive effect on emission changes for Taiwan's major economic sectors. Emissions of SO2 in industry and other sectors showed a decreasing trend due to fuel quality improvements and pollution control. However, NOx and CO2 emissions increased sharply in all sectors. Comparisons were also made with Germany, Japan and USA. This study hay shown that improvement in energy efficiency, pollution control and fuel substitution are major options to reduce SO2, NOx and CO2 emissions.

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Energy Specializations: Energy Modeling – Sectoral Energy Demand & Technology; Energy Modeling – Integrated Assessment Modeling; Energy and the Environment – Air Emissions (other than greenhouse gases); Energy and the Economy – Energy as a Productive Input; Energy and the Economy –Economic Growth and Energy Demand; Energy and the Economy – Resource Endowments and Economic Performance; Energy and the Economy – Energy Shocks and Business Cycles

JEL Codes:
Q55 - Environmental Economics: Technological Innovation
Q43 - Energy and the Macroeconomy
Q52 - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
O13 - Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Q34 - Natural Resources and Domestic and International Conflicts
F44 - International Business Cycles

Keywords: Air pollution, SO2, NOx, CO2, Taiwan, decomposition, Divisia Index

DOI: 10.5547/ISSN0195-6574-EJ-Vol17-No1-1


Published in Volume17, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.