Decomposing the changes of energy-related carbon emissions in China: evidence from the PDA approach

Abstract

In order to investigate the main drivers of CO2 emissions changes in China during the 11th Five-Year Plan period (2006–2010) and seek the main ways to reduce CO2 emissions, we decompose the changes of energy-related CO2 emissions using the production-theoretical decomposition analysis approach. The results indicate that, first, economic growth and energy consumption are the two main drivers of CO2 emissions increase during the sample period; particularly in the northern coastal, northwest and central regions, where tremendous coal resources are consumed, the driving effect of their energy consumption on CO2 emissions appears fairly evident. Second, the improvement of carbon abatement technology and the reduction in energy intensity play significant roles in curbing carbon emissions, and comparatively the effect of carbon abatement technology proves more significant. Third, energy use technical efficiency, energy use technology and carbon abatement technical efficiency have only slight influence on CO2 emissions overall. In the end, we put forward some policy recommendations for China’s government to reduce CO2 emissions intensity in the future.

Yabin Da

Assistant Professor

Research interests include Environmental Economics (Climate Change), Applied Econometrics, and Causal Inference.