The impact of mitigating CO2 emissions on Taiwan's economy

A computationally multi-objective programming approach and a Leontief interindustry model is used to investigate trade-off between national GDP and CO2 emissions in Taiwan. Based on the empirical findings of the model, the impact of mitigating CO2 emissions on Taiwan's economy is evaluated. The results show that Taiwan's GDP will drop 34% of the targeted GDP in 2000 and Taiwan's economy will be much weakened If the government-stabilizes annual CO2 emissions at the 1990 level. When we relax CO2 emissions up to 128% of the 1990 level, Taiwan's economy will be able to maintain a 5.37% average annual growth rate up to the year 2000; a 157% CO2 emission level for a 5.92% annual GDP growth rate; and a 213% CO2 emission level for a 6.85% annual GDP growth rate. Finally, policy implications are discussed in order to aid policy makers in economic planning.