Abstract
A linear programming model is established to reflect the relationship between China's economic development and the related carbon dioxide (CO2) emissions, which is revealed by analysing the characteristics of China's economic development. Grey prediction model, GM(1,1), is applied to forecast the parameters of the programming model, including the total amount of labour, water resources and fixed assets, and the corresponding consumption or input coefficients. The results of the models indicate that contradictions exist between China's CO2 emissions reduction and the high economic growth rate, employment and the efficient use of fixed assets. Furthermore, it also shows that China's economic development will be challenged by overcapacity, water resource shortages and a rising unemployment rate. The policy implications of the results are discussed.
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