The Effect of Carbon Taxes on Energy Use by the Manufacturing Sector of Taiwan

摘要: This study evaluates the possible impact of carbon taxes on most important sector a newly industrialized economy. Changes in energy consumption pattern and resulting dioxide emissions are analyzed for entire manufacturing as well four energy-intensive industries Taiwan. A tax is imposed predetermined, fixed each type according to its content. Simulations performed, using atwo-stage translog price model, reference case different levels taxes.The results indicate that high expected stabilize CO2 1990 level by year 2005 while maintaining 5% growth rate sector. Reductions consumptionand from such substantial, sensitive level. Prices aggregates increase due directly related tax. Industries react differently choosing their mix. Specifically, decrease share allocated coal inputs an shares oil, natural gas, noncarbon mix observed electricity generation