Abstract

Despite the increasing contribution of the automotive industry to China’s national economy, CO2 emissions have become a challenge. However, the research about its energy consumption and carbon emissions is lacking. The significance of this study is to fill the research gap and provide suggestions for China’s automotive industry to reduce its carbon emissions. In this paper, the extended logarithmic Division index (LMDI) method is adopted to decompose the factors affecting carbon emissions and determine the key driving forces. According to provincial statistical data in China in 2017, the annual emissions of six provinces exceeded five million tons, accounting for 55.44% of the total emissions in China. The largest source of emissions in China is in Jilin Province, followed by Jiangsu, Shandong, Shanghai, Hubei and Henan. The decomposition results show that investment intensity effect is the greatest factor for CO2 emissions, while R&D intensity and energy intensity are the two principal factors for emission reduction. After the identification of driving factors, mitigation measures are proposed considering the current state of affairs and real situation, including improving energy structure, accelerating product structure transformation, stimulating sound R&D investment activities, promoting energy conservation and new energy automobile industry development and boosting industrial cluster development.

Highlights

  • China has become the world’s superpower for automobile manufacturing and consumption

  • IDA is used in this paper as it is widely adapted in energy systems studies, for instance, energy balances and energy flows in an economy

  • This paper mainly considers the direct emissions and certain indirect emissions, as the data are easy to obtain

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Summary

Introduction

China has become the world’s superpower for automobile manufacturing and consumption. The automotive industry is a vital pillar industry in China’s national economy; since the reform and opening-up, the development and growth of China’s automobile industry has strongly promoted the rapid improvement of the national economy and has had a far-reaching impact on the gross industrial output value, social taxation, labor employment, industrial collaboration, technology upgrading and urban construction. Its competitiveness directly reflects the level of industrial manufacturing in an economy. 2012 to 2017, the automotive industry in China experienced a rapid development. Compared with that in western developed countries, the automotive industry in China developed much later, but it is developing rapidly and has accounted for the largest number of new car production and sales for eleven consecutive years since 2009

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