Climate change has emerged as a critical global challenge. To address this issue, nations are implementing mitigation and adaptation policies, with carbon pricing considered one of the most cost-effective tools. While the introduction of carbon fees can promote emissions reduction, it may also increase industrial costs and affect the international competitiveness of export-oriented economies.
The European Union has implemented the Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage. As an export-oriented economy, Taiwan enacted the Climate Change Response Act in 2023, mandating carbon fees from 2025, which will significantly impact import and export industries.
This study aims to analyze the impact of carbon tariffs on Taiwan's major import and export industries, examine corporate response strategies, and propose governmental policy measures. Utilizing transaction cost economics theory, the study evaluates two options for companies facing carbon taxes: tax payment or investment in emission reductions. The study hypothesizes that the severity of carbon tax impact on an industry is positively correlated with the elasticity of technology substitution.
The research will focus on industries such as cement, iron and steel, and fertilizer production in Taiwan to analyze the correlation between carbon emission reduction technology maturity and carbon tax response. Through industrial carbon footprint analysis, this study explores the impact and coping strategies of Taiwan's major import and export industries facing carbon taxation, providing a reference for the design of Taiwan's carbon pricing system.
In confronting the dual challenges of climate change and carbon tax policy, Taiwan's industries must proactively plan and accelerate their green transformation.
