As a human being living in the blue global, protecting the earth is our responsibility. The exhaustion of petrochemical energy problem has caused huge impact to our life. Due to its global impact on the environment and economy, this study will take a national viewpoint to discuss the strategies of coping with the shortage of petrochemical energy problems.
Since the Nobel economist Wassily Leontief (no citation in abstract) has made use of the input-output table to describe the inter-relations of domestic industry sectors in 1936, each government has conducted regular survey to establish such input-output tables for statistical purposes. Each of this table transforms the business in all industries into quantitative input-output relation in a national-scaled economic system.
For the purposes of investigating the impact of shortage of petrochemical energy resources, we have adopted the case of Taiwan by classifying all domestic industries into nine sectors in interests. Then, by following the Copenhagen High-Peak Forum in 2009, we developed a vector autoregressive model in time series analysis to predict the input-output table in 2025, including the output, final demand and input coefficient of each industrial sector. Thus, we can observe the trend of development of each industry sector we are interested in. By considering different scenarios and observing the changes of industrial outputs and final demands, we may develop proper industrial strategies to support a government’s decision. An illustrative example on Taiwan’s economic analysis is provided to solve or reduce the industrial impact caused by exhaustion of petrochemical energy resources and achieve sustainable development between economics and environment energy.