Integrated Planning for Mitigating CO2 Emissions in Taiwan: A Multi-objective Programming Approach

Abstract

In this paper, a multi-objective programming approach integrated with a Leontief inter-industry model is used to evaluate the impact of energy conservation policy on the cost of reducing CO2 emissions and undertaking industrial adjustment in Taiwan. An inter-temporal CO2 reduction model, consisting of two objective equations and 1340 constraint equations, is constructed to simulate alternative scenarios consisting of Case I (no constraint on CO2 emissions), Case II (per capita CO2 emissions at Taiwan year 2000 levels, i.e. 9.97 t), Case III (Case II emission levels with energy conservation), and Case IV (Case II emission levels with energy conservation plus improved electricity efficiency). The empirical results show that the cost of reducing CO2 emissions in Cases II, III, and IV is US$404, US$376 and US$345 per t, respectively. Some policy implications are also elaborated upon in order to assist decision makers with relevant planning.