<![CDATA[In this paper, a structural decomposition analysis based on an input-output framework has been developed to examine the factors, which affect the economy-wide CO 2 emission changes due to the introduction of carbon tax in the Indonesian power sector during 2011-2030. There are three major components that affect the total economy-wide change in CO 2 emissions, i.e., fuel mix-, structural-, and final demand- effects. The results show that, the CO 2 mitigation under the carbon tax of US$200/tC would be 20.5 times higher than that with the carbon tax rate of US$5/tC. The fuel mix effect is found to be most influential in reducing the CO 2 emission during the planning horizon under all of the carbon tax rates considered and is followed by the final demand- and structural-effects.]]>
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