Changes of energy-related GHG emissions in China: An empirical analysis from sectoral perspective

Abstract

In order to better understand sectoral greenhouse gas (GHG) emissions in China, this study utilized a logarithmic mean Divisia index (LMDI) decomposition analysis to study emission changes from a sectoral perspective. Based on the decomposition results, recently implemented policies and measures for emissions mitigation in China were evaluated. The results show that for the economic sectors, economic growth was the dominant factor in increasing emissions from 1996 to 2011, whereas the decline in energy intensity was primarily responsible for the emission decrease. As a result of the expansion of industrial development, economic structure change also contributed to growth in emissions. For the residential sector, increased emissions were primarily driven by an increase in per-capita energy use, which is partially confirmed by population migration. For all sectors, the shift in energy mix and variation in emission coefficient only contributed marginally to the emissions changes. The decomposition results imply that energy efficiency policy in China has been successful during the past decade, i.e., Top 1000 Priorities, Ten-Key Projects programs, the establishment of fuel consumption limits and vehicle emission standards, and encouragement of efficient appliances. Moreover, the results also indicate that readjusting economic structure and promoting clean and renewable energy is urgently required in order to further mitigate emissions in China.