Development and application of dynamic hybrid multi-region inventory analysis for macro-level environmental policy analysis: a case study on climate policy in Taiwan.

We develop a novel inventory method called Dynamic Hybrid Multi-Region Inventory analysis (DHMRI), which integrates the EEMRIOA and Integrated Hybrid LCA and applies time-dependent environmental intervention information for inventory analysis. Consequently, DHMRI is able to quantify the change in the environmental footprint caused by a specific policy while taking structural changes and technological dynamics into consideration. DHMRI is applied to assess the change in the total CO2 emissions associated with the total final demand caused by the climate policy in Taiwan to demonstrate the practicality of this novel method. The evaluation reveals that the implementation of mitigation measures included in the existing climate policy, such as an enhancement in energy efficiency, promotion of renewable energy, and limitation of the growth of energy-intensive industries, will lead to a 28% increase in the total CO2 emissions and that the main driver is the export-oriented electronics industry. Moreover, a major increase in the total emissions is predicted to occur in Southeast Asia and China. The observations from the case study reveal that DHMRI is capable of overcoming the limitations of existing assessment tools at macro-level evaluation of environmental policies.

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