Abstract
Because the carbon reduction trends in the world and the energy supply structure is still in high degrees of carbon emission in Taiwan, the government proposed many regulations successively, such as “Frameworks of Sustainable Energy Policy - an Energy-Saving and Carbon-Reduction Action Plan’’ and “Master Plan of Energy Conservation and Carbon Mitigation”. Therefore, the carbon reduction issue in Taiwan must be promoted in the future. The above-mentioned description reveals that it needs to seek the renewable energy to reduce the high CO2 emissions situation in Taiwan. The related policies promote the development of solar energy industrial sector. The objective of this thesis is to develop a benefit evaluation for carbon reduction and cost of renewable energy policy for administrative region. This thesis adopts a system dynamics (SD) approach to constructing the renewable energy policy SD model to help decision makers to evaluate the renewable energy policy benefit. It analyzes the implemented costs required and related effects of the carbon emission in administrative region. In case implementation, this thesis simulates the solar energy applications in Penghu Low Carbon Island. The simulation of four policy options has been introduced in the case implementation. The result shows that the option of long-term adoption of solar energy applications is the best policy choice, because its carbon reduction benefit is higher than the other policy options. The approach and results of this research can be used for a reference to construct other administrative regions.