Linkage Effects and Environmental Impacts from Oil Consumption Industries in Taiwan

Input–output modeling and cluster analysis are used to assess the impacts of oil consumption industries on environmental quality and inter-industry relationships in Taiwan. Results indicate that fuel oil has the greatest impact on the environment. The transportation sector has grown rapidly with high energy intensity and severe pollution emission in Taiwan. Also, power generation, other industrial chemicals, paper products, non-metallic mineral products, petro-chemical materials, rubber products, cement and textiles are identified as the most significant industries causing serious pollution problems in Taiwan. Results of inter-industry linkages confirm that investment of the above-mentioned industries should be adjusted to better energy efficiency, environmental quality and economic bases. This study indicates that energy policy should integrate environmental policy, in addition to assuring energy and economical gains.