Identifying key factors and strategies for reducing industrial CO₂ emissions from a non-Kyoto protocol member's (Taiwan) perspective

In this study we use Divisia index approach to identify key factors affecting CO₂ emission changes of industrial sectors in Taiwan. The changes of CO₂ emission are decomposed into emission coefficient, energy intensity, industrial structure and economic growth. Furthermore, comparisons with USA, Japan, Germany, the Netherlands and South Korea are made to have a better understanding of emission tendency in these countries and to help formulate our CO₂ reduction strategies for responding to the international calls for CO₂ cuts. The results show that economic growth and high energy intensity were two key factors for the rapid increase of industrial CO₂ emission in Taiwan, while adjustment of industrial structure was the main component for the decrease. Although economic development is important, Taiwan must keep pace with the international trends for CO₂ reduction. Among the most important strategies are continuous efforts to improve energy intensity, fuel mix toward lower carbon, setting targets for industrial CO₂ cuts, and advancing green technology through technology transfer. Also, the clean development mechanism (CDM) is expected to play an important role in the future.