Energy Transition, Economic Growth, and CO2 Emission: An Application of Energy and Environment in Dynamic Input-Output Models

the year 2011 earthquake in Northeast Japan and the incident of Fukushima nuclear power plant has inspired energy policy in Taiwan to be reevaluated. The Non-nuclear homeland project announced in 2017 has declared a nuclear free energy policy to adjust energy proportion to replace nuclear power by renewable energy before year 2025. This study mainly focuses on the evaluation of the economic effects generated by solar power investment. This study also compared the CO₂ reduction contribution of replacing coal-fire electricity by solar power and wind power. The empirical result of our energy and environment in dynamic input-output models revealed the total economic effect induced by renewable energy investment would reach US $95,989.70 million. The CO₂ emission could be reduced by 95-98% when replacing coal-fire electricity by solar power and wind power. Such findings have illustrated the economic benefit and CO₂ reduction contribution for renewable energy transition.