In this paper, a computationally multi-objective programming approach and a Leontief interindustry model are used to investigate trade-off between national GDP and CO2 emissions in Taiwan. The estimated results show that Taiwan could adopt any one of four non-inferior solutions to the CO2 mitigation problem. Through the first solution, if the government stabilizes annual CO2 emissions at the 1990 level, then Taiwan’s GDP will drop 34% off the targeted GDP growth rate for the year 2000, seriously weakening the economy. In this case, the annual growth rate will average 2.44% during the period 1990-2000. If CO2 emissions are maintained at 128% of the 1990 level, Taiwan’s economy will be able to show a 5.37% average annual growth rate up to the year 2000. Similarly, a 157% CO2 emissions level would mean a 5.92% annual GDP growth rate, and a 213% CO2 emissions level for a 6.85% annual GDP growth rate. In the second solution, Taiwan’s estimated GDP for the year 2000 would only decrease to NT$9,124 billion (i.e., 91.9% of NT$9,918 billion) with emissions of 149,935 103 tons of CO2 in that year (128% of 1990 emission levels). This solution would not significantly affect our economy and might be conditionally accepted by the international community. The government could reach this target by offering financial incentives to encourage investment activities related to CO2 mitigation and to other energy-saving enterprises. Keywords: greenhouse effect, economic development, multi-objective programming, interindustry analysis
