   Edited by  Low-Carbon Policy and Development in Taiwan Edited by Li-Fang Chou and Liang-Feng Lin Published by InTech Janeza Trdine 9, 51000 Rijeka, Croatia Copyright © 2012 InTech All chapters are Open Access distributed under the Creative Commons Attribution 3.0 license, which allows users to download, copy and build upon published articles even for commercial purposes, as long as the author and publisher are properly credited, which ensures maximum dissemination and a wider impact of our publications. After this work has been published by InTech, authors have the right to republish it, in whole or part, in any publication of which they are the author, and to make other personal use of the work. Any republication, referencing or personal use of the work must explicitly identify the original source. Notice Statements and opinions expressed in the chapters are these of the individual contributors and not necessarily those of the editors or publisher. No responsibility is accepted for the accuracy of information contained in the published chapters. The publisher assumes no responsibility for any damage or injury to persons or property arising out of the use of any materials, instructions, methods or ideas contained in the book. Publishing Process Manager Danijela Duric Technical Editor Goran Bajac Cover Designer InTech Design Team First published February, 2012 Printed in Croatia A free online edition of this book is available at www.intechopen.com Additional hard copies can be obtained from orders@intechweb.org Low-Carbon Policy and Development in Taiwan, Edited by Li-Fang Chou and Liang-Feng Lin p. cm. ISBN 978-953-51-0156-7 free online editions of InTech Books and Journals can be found at www.intechopen.com Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Contents Preface IX Energy Saving and Carbon Reduction Policy in Taiwan 1 Yi-Cheng Ho and Jenn-Shyong Kuo Renewable Energy Feed-in-Tariff System Design and Experience in Taiwan 25 Li-Fang Chou and Liang-Feng Lin Assessment of the Decoupling of GHGs and Electricity Costs Through the Development of Low-Carbon Energy Technology in Taiwan 43 Chien-Ming Lee and Heng-Chi Liu Estimation of Taiwan’s CO2 Emissions Related to Fossil Fuel Combustion - A Sectoral Approach 53 Shinemay Chen, Der-Cherng Lo and Huai Hsuan Yu A Preliminary Look at the Relationship Between Environmental Change and Economic Growth in Taiwan 69 Kuang-Ta Lo and Ya-Ting Yang Low-Carbon Pilot Tour and Municipal Government Investment: Taiwan’s Experience 89 Liang-Feng Lin With a view to launch a low carbon society in Taiwan by 2050, the Executive Yuan ratied the Sustainable Energy Policy Guide in 2008. Taiwan is now committed to reduce CO2 emission back to its 2005 level by 2020. Then, back to the 2000 level by 2025, and nally achieving 50% of 2000 level by 2050. In addition, the EPA abiding by the Copenhagen Accord to summit Taiwanese NAMAs to the UNFCCC in 2010. Six authors were involved in putting together this book, and the six papers they wrote were part of the Study of Emissions Trading Scheme Establishment to Respond to Low Carbon and Green Growth in Taiwan program. Founded by the National Science Council, this program was an interdisciplinary analysis of experiences, good practice and progress in the area of low carbon society development in Taiwan. This book was complied by Professor Li-Fang Chou of Department of Public Finance, National Chengchi University, who is also the Director of Green Energy Finance Research Center. She coauthored the paper “Renewable Energy Feed-in-Tariff Taiwan’s Experience.” Chien-Ming Lee, of the Institute of Natural Resource Management, National Taipei University, is the author of “Assessment of the Decoupling of GHGs and Electricity Costs through the Development of Low-Carbon Energy Technology in Taiwan.” Yi-Cheng Ho of the Department of Public Finance, National Chengchi University, coauthored the paper “Energy Saving and Carbon Reduction Policy in Taiwan.” Shinemay Chen of the Department of Public Finance, National Chengchi University, coauthored the paper “Estimation of Taiwan’s CO2 Emissions related to Fossil Fuel Combustion–Sectoral Approach.” Kuang-Ta Lo of Department of Public Finance, National Chengchi University, contributed an article titled “Environment Change and Economic Growth in Taiwan.” Liang-Feng Lin of Department of Accounting, National Chengchi University, who is also the Vice Director of Green Energy Financial Research Center, has been the most important person in the editing process. He also a author of “Low Carbon Pilot Tour and the Investment of Municipal Government.” This book has arrived at the right time, because this is the time to educate the people of Taiwan, about the necessary action for achieving a low carbon society. I am very thankful for this book and would recommend it to the public. Stephen Shu-hung Shen Minster of the EPA Foreword VII Foreword IX Preface Taiwan is a typical small Asian country with few energy resources. Therefore, the question of how to adapt to the trend of a new carbon society has become very important for many developing counties. The present collection of essays not only provides the developmental process of Taiwan’s policy, but it also provides an econometric approach to help to estimate CO2 emission levels. The studies also provide some successful examples of how low-carbon regions have helped urban areas revive. Taiwan has become well known for its high-tech industry in the last 20 years. However, Taiwan, as a member of the global village, feels the responsibility to reduce carbon emissions, even though it is not currently an Annex one country. The studies address Taiwan’s low-carbon developmental policies of the past 10 years, such as the renewable energy Feed-in-Tariff and the Greenhouse Gas Reduction Act. Besides providing explanations of policy development, the essays also cover an econometric approach to estimate Taiwan’s sector department CO2 emissions and to decouple greenhouse gases and electricity costs. The studies further analyze how environmental change affects the economic growth of Taiwan. Finally, the book provides two successful examples of low-carbon pilot regions in Taiwan to explain how a municipal government can use a minimal investment to revive a declining city. Acknowledgement: The authors and editors of this collaborative effort have received generous funding from the National Science Council (100-3113-P-004-001) in Taiwan. Without the NSC’s nancial support, the publication of this monograph would not have been possible. Li-Fang Chou Liang-Feng Lin Preface [...]... amount 2007 Total Year 22 Low-Carbon Policy and Development in Taiwan Energy Saving and Carbon Reduction Policy in Taiwan 23 6 Conclusion Taiwan is encountering the global environmental crises related to global warming and faces continuing challenges from the environmental deterioration stemming from economic development Taiwan is deficient in conventional energy resources and highly dependent on energy... There is no inducement to invest in green buildings  Making energy conservation improvements in old buildings is lacking in incentives  No energy conservation standards exist for the design and construction of new buildings  High costs make it difficult to equip buildings with renewable energy  Inducements for buying energy-saving building materials and appliances still need to be increased  The... design and practice in Taiwan First, the chapter indicates the present status of energy consumption and supply in Taiwan; then it introduces Taiwan s Renewable Energy Development Law (REDL); a discussion of the financial mechanism of the FIT in Taiwan follows; finally, we examine the effectiveness of Taiwan s FIT In the meantime, we also want to introduce Taiwan' s FIT model to members of the international... emission intensity (i.e., CO2 emission per unit GDP) was 0.023 kg in 1990, 0.0231 kg in 2000, 0.0212 kg in 2007, 0.0202 kg in 2008, and 0.0196 kg in 2009 The emissions in various years and related indexes accounted for about 1% of global emissions, for Taiwan a ranking of 22nd in the world The figure 3 shows the CO2 emissions intensity form 1990 to 2009 Energy Saving and Carbon Reduction Policy in Taiwan. .. according to the discharged air regulations output quantity pollutants, and and input the distributors or quantity importers are levied on according to the composition and quantity of oil fuels Source: Ministry of Finance, Directorate General of Budget, Accounting and Statistics, Executive Yuan, R.O.C (2011) Table 5 Taiwan s Environment-related Taxes 20 Low-Carbon Policy and Development in Taiwan Taiwan's... industries in Taiwan The economic development trend in Taiwan of recent years shows the structural changes of tertiary industry, with the gross product of the industrial sector decreasing year after year, uniting for only 31% of gross product of Taiwan in 2008, whereas the proportion of the service industry has increased continuously, rising to 68% in 2008 2.1 The structure of energy consumption in Taiwan. .. global final energy consumption In 2011 additional investments of renewable energy in the world were US$211 billion and the top 5 new capacity investment countries were China, Germany, the United States, Italy, and Brazil, respectively In terms of new investment in types of energy, China was among the top-ranking countries in wind power and solar heat; Germany was at the top in solar photovoltaic and biodiesel... “green tax” in Taiwan Taxes related to the environment or energy sources have been levied for the existing policy purposes of energy conservation, environmental protection, maintaining health and rectifying external effects, including an energy tax, a transportation tax, a pollution tax and a tax on resources Energy Saving and Carbon Reduction Policy in Taiwan 17 Natural resources may be put in production... Kyoto Protocol and high oil prices, all countries in the world have put forward reduction strategies for CO2 emissions, including such as developing highvalue and low-carbon industrial structures, increasing the energy utilization efficiency of various sectors, and constructing reasonable and effective policy tools for the sustainable development of energy sources, environmental protection and the economy... Energy-intensive industries in the sectoral structure of the manufacturing industry still occupy an important position: energy-intensive industries have a high industry correlation effect, and support the development of other middle and downstream knowledge-intensive industries; they represent a stable raw material supply source for various industries, so they profoundly influence the development of Taiwan' s . % Low-Carbon Policy and Development in Taiwan1 0 pressure on Taiwan. Taiwan shares the responsibility for reducing emissions and has take position actions in this regard. Furthermore, international. no inducement to invest in green buildings.  Making energy conservation improvements in old buildings is lacking in incentives.  No energy conservation standards exist for the design and. Reduction Policy in Taiwan 1 Yi-Cheng Ho and Jenn-Shyong Kuo Renewable Energy Feed -in- Tariff System Design and Experience in Taiwan 25 Li-Fang Chou and Liang-Feng Lin Assessment of the Decoupling