TY - JOUR TT - A Study of Energy Efficiency and Mitigation of Carbon Emission: Implication of Decomposing Energy Intensity of Manufacturing Sector in Taiwan AU - Huang, Yu-kai AU - Hsu, Jyh-yih AU - Sun, Lih-chyun PY - 2017 DA - June JF - International Journal of Energy Economics and Policy JO - IJEEP PB - İlhan ÖZTÜRK WT - DergiPark SN - 2146-4553 SP - 26 EP - 33 VL - 7 IS - 2 KW - Logarithmic mean Divisia index KW - Energy intensity KW - Carbon intensity KW - Structural change KW - Fuel mixed effect N2 - This paper applies the Logarithmic Mean Divisia Index (LMDI) approach to examine aggregate energy intensity of the manufacturing sector in Taiwan from 1982 to 2014. We decompose aggregate energy intensity into three effects, which are the fuel mixed effect, the sectoral energy intensity effect, and the substructural effect. The results show that aggregate energy intensity is highly correlated with carbon intensity in Taiwan. Moreover, the aggregate energy intensity is mainly driven by sectoral energy intensity effect. The influence of the substructural effect and fuel mixed effect on improving the aggregate energy intensity has become larger in the recent years. The policy implication of study results suggests that internalizing the costs of carbon emission, creating incentives to invest energy-saving technology, establishing a fair and efficient electricity market are needed in Taiwan UR - https://dergipark.org.tr/en/pub/ijeeep/issue//351175 L1 - https://dergipark.org.tr/en/download/article-file/361716 ER -