A decomposition analysis of energy-related CO2 emissions in Chinese six high-energy intensive industries

Abstract

Abstract China's six high-energy intensive industries use more energy than any other industrial sectors, consuming almost 90% of manufacturing energy and more than 50% of national energy and contributing over 50% of national energy-related CO2 emissions. Thus, this study is motivated to identify the drivers of energy-related CO2 emissions change of high-energy intensive industries in China based on the Logarithmic Mean Divisia Index (LMDI) method. Results demonstrate that CO2 emissions in China's high-energy intensive industries were on the rise during 1986–2013 with annual growth rate of 7.8%. The expansion of industrial scale, which increased 52.14 billion tons of CO2 emissions in six high-energy intensive industries, was the leading force explaining CO2 emissions change; and the effect of which was most significant in power industry (20.52 billion tons of CO2 emissions increase). Energy intensity was the major contributor to promote the decline in CO2 emissions, and the effect was most significant in chemical industry and non-metallic mineral products industry. Besides, energy structure and industrial structure effects have relatively small impacts on CO2 emissions change due to the relatively stable energy structure and industrial structure during the study period. Policy recommendations are made for future emission reductions in Chinese six high-energy intensive industries.