Toward green transition in the post Paris Agreement era: The case of Taiwan

The Paris Agreement opens a new era to combat the global climate change. Apart from this, the COVID-19 provides an opportunity of restructuring industries of an economy. The current literature and policy practices have addressed the need for including green transition measures in the adaptation and recovery plans to avoid a significant rebound effect on the environment. Given the fact that emission mitigation and the pandemic might have asymmetric impacts on the industrial structure, this study makes a quantitative contribution in analyzing the economy-wide impacts of main green transition policies to elucidate the significance of renewable energy development and market-based instruments for Taiwan. Our results show that offshore wind alone would not be sufficient to re-direct the energy-intensive pathway for Taiwan. In this regard, a sound green policy transition package ought to complement with a market-based instruments (such as carbon tax) and suitable tax revenue recycling scheme in order to reach a 'win-win situation' of a reduction of GHG emissions and a better economic performance.

Automated summary

The Paris Agreement marks the beginning of a new era in addressing global climate change, while COVID-19 presents an opportunity for economic restructuring. This study highlights the importance of incorporating green transition measures into adaptation and recovery plans, emphasizing the need for a comprehensive approach that combines market-based instruments and tax revenue recycling in order to achieve a reduction in greenhouse gas emissions and improve economic performance. It also suggests that offshore wind alone is insufficient to redirect Taiwan's energy-intensive pathway.