Authors: Hsing-Chun Lin, Tzu-Min Kao and Yih-Ming Lin
The purpose of this study is to investigate the direct and indirect impacts of the promotion of bioethanol on gross domestic product (GDP), employment, and 2 CO emission in Taiwan. We examine the Taiwan economy, at both national and regional levels, through the use of the “Multi-regional Input-Output” (MRIO) model, which includes the forward and backward linkage effects of different production resources. Our results reveal that bioethanol produced from sweet potato crops has the highest dispersion, which indicates that the sweet potato bioethanol sector is a backward linkage industry, whilst also revealing that the forward linkage effects of bioethanol are quite small. By the simulation results, the impacts in 2009 are expected to be an increase of NT$1,510 million in GDP and an increase in employment of 3,132 jobs. Furthermore, the positive GDP and employment impacts are expected to become more significant from 2009 to 2012, with the central region of Taiwan benefiting more from bioethanol promotion than other regions.
Keywords: Multiregional Input-Output model; sweet potato; gross domestic product; employment