GREEN GROWTH IN TAIWAN — AN APPLICATION OF THE OECD GREEN GROWTH MONITORING INDICATORS

Abstract

Green growth is a global priority strategy for responding to climate change. This paper applies the OECD (2011a) green growth monitoring indicators framework to analyze 20 indicators of progress toward green growth specific to Taiwan. Principal Component Analysis and Analytic Hierarchy Process are used as weighting methods to calculate an aggregating composite index and perform sensitivity testing. The results show that for the past decade (2002–2011), Taiwan has been moving toward green growth but has been negatively impacted by its natural capital stock. This indicates that improving natural capital stock is a key for sustaining green growth in Taiwan.