Analyzing the Driving Forces behind CO2 Emissions in Energy-Resource-Poor and Fossil-Fuel-Centered Economies: Case Studies from Taiwan, Japan, and South Korea

Based on the strong similarities between energy-resource-poor and fossil-fuel-centered economies (e.g., Taiwan, Japan, and South Korea) in terms of economy, culture, and energy usage characteristics, they should be analyzed collectively. This study adopted two-tier input-output structural decomposition analysis to identify the driving forces behind CO2 emissions to these countries to the formulation of effective environmental policy. Data from the World Input-Output Database was used to decompose relative changes in CO2 emissions into a range of technological advances, factor substitution, and final demand effects. Technological advances in energy (direct) contributed to a 77% reduction in Taiwan and a 34% reduction in South Korea. This is a clear indication that improving energy efficiency via technological advances should be a priority. In Japan in particular, there was a 22% reduction in CO2 emissions attributable to technological advances in materials; hence, it is recommended that Taiwan and South Korea work to extensively develop eco-industrial parks to create industry clusters to promote resource/energy efficiency and reductions in CO2 emissions. Decomposition results based on factor substitution revealed that a variety of strategies will be required, such as switching to fuels that are less carbon intensive, promoting the adoption of renewable energies, and implementing clean-coal technologies.

Automated summary

The study emphasizes the importance of improving energy efficiency and developing environmental technologies in reducing CO2 emissions in Taiwan, Japan, and South Korea. Additionally, promoting the development of eco-industrial parks, transitioning to low-carbon fuels, and implementing clean-coal technologies are identified as effective strategies for emission reduction.