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