Characteristics and driving factors of carbon emissions in China

Abstract

Many regions or countries seek to transition to a low-carbon economy, but there is ambiguity about how carbon emissions change with economic growth. This paper captures characteristics of carbon emissions in China using the Tapio Method. To detect driving factors of carbon emissions in economic growth, we adopt the Log-Mean Divisia Index decomposition method. The results of the paper are as follows: (1) Economic growth in most regions of China has outpaced the growth rate of carbon emissions, showing the characteristics of decoupling. (2) Metropolitan cities have a greater impact on the level of decoupling in neighboring provinces and municipalities. (3) The decoupling of carbon emissions from economic growth is caused by declining energy intensity in China. (4) The energy mix and industrial structure have little impact on the growth rate of carbon emissions. In addition, some policy implications are summarized according to the findings of this paper.