This study employs input-output (I-O) structural decomposition analysis to examine trends and effects of industrial CO2 emission in Taiwan during 1981~1986, 1986~1991, 1991~1996 and 1996~2001.Then to identify the characteristics and the important factor of industrial CO2 emission in the developing period, and provide the decreasing base of CO2 emission for future.
Changes of CO2 emission can be decomposed into nine factors: (1) the industrial energy coefficient, (2) the CO2 emission factor, (3) interfuel substitution, (4) the rate of domestic production to intermediate input, (5) the structural change of intermediate input, (6) the level of domestic final demand, (7) the change of domestic final demand, (8) the level of exports and (9) the structural change of exports. According the result of this study, the amount of CO2 emission increased 15,312 tons during 1981~1986, it was caused by using more coal. In addition to, the level of domestic final demand and the level of exports are increment factors, the change of domestic final demand caused decrement effect. From 1986 to 1991, the increment of CO2 emission that compared with the pass five years period was 34,874 tons. The main increment factor was the export growth quickly, and the rate of domestic production to the intermediate input was primary decrement factor. The amount of CO2 emission to rise up 39,745 tons between 1991 and 1996, the level of domestic final demand and the level of exports grown astonishing up were two key increment causes. However the energy direct coefficient and the structure of intermediate input to industries were two principal decrement causes, they shown that the economization of energy and the improvement of industrial structure were effectual in this period. During 1996 to 2001, the growth of CO2 emission was higher 50,748 tons than the previous five years, the result was caused due to both the level of exports and that of domestic final demand. Besides the structural change of domestic final demand, intermediate input to industries and export offered decrement effect. They displayed which the structure of domestic final demand oriented lower energy consumption. As the rate of economic growth risen up very quickly and the electricity production applied a lot of the energy that produced higher CO2 emission, the energy coefficient expanded the total amount of CO2 emission greatly in these five years. In addition to, the input of the oil production to all industries ascended and the export of petroleum production descended gradually, causing the rate of domestic production to intermediate input to grow up.