PoliciesTheSTIRPATModel.PDFVIP

Journal of Management and Sustainability; Vol. 6, No. 1; 2016 ISSN 1925-4725 E-ISSN 1925-4733 Published by Canadian Center of Science and Education The Effect of Ecological Elasticity in Taiwan’s Carbon Reduction Policies: The STIRPAT Model Po-Young Chu1, Yu-Ling Lin2 Cyuan-Sian Guo2 1 Department of Management Science, National Chiao-Tung University, Hsinchu City, Taiwan, R.O.C. 2 Department of Business Administration, National Chin-Yi University of Technology, Taichung City, Taiwan, R.O.C. Correspondence: Yu-Ling Lin, Associate Professor Department of Business Administration National Chin-Yi University of Technology, No.57, Section 2, Chung-Shan Road, Taiping, Taichung, Taiwan 411, R.O.C. Tel: 886-4-2392-4505 ext. 7784. E-mail: yllin2@; yllin@.tw Received: January 11, 2016 Accepted: February 3, 2016 Online Published: February 25, 2016 doi:10.5539/jms.v6n1p121 URL: /10.5539/jms.v6n1p121 Abstract The challenges from the climate change and the global warming have become one of the most important issues to solve in the world. Under the Kyoto Protocol, countries which have signed the Kyoto Protocol have faced the pressure of reducing greenhouse gas emissions. The two main policies for reducing carbon dioxide are “carbon tax” and “carbon trading”. This research explores which policy will be more suitable for the society and economic environment of Taiwan. This research uses EIA database, the statistical data from the Taiwan Bureau of Energy, Ministry of Economic Affairs, and the data from AREMOS database from 1982 to 2010. The dependent variable is the emission of carbon dioxide, and the independent variables are premium diesel oil price index, population, GDP per capita and the squared term of GDP per capita. The research method is based