CO2 emissions from the Chinese cement sector: Analysis from both the supply and demand sides

Abstract

AbstractChina is the largest producer and consumer of cement worldwide, and cement production entails the release of substantial carbon dioxide (CO2) emissions. As the cement sector is a crucial sector of the Chinese economy, understanding the role of supply‐ and demand‐side factors may help accelerate efforts to mitigate CO2 emissions. However, few studies have analyzed the critical factors affecting CO2 emissions in the sector based on a combined supply‐ and demand‐side perspective. In this study, we developed an integrated framework that included eleven indicators covering both the supply and demand sides. Results revealed that improving cement production technology cannot offset CO2 emissions from the growth in demand for cement. Improving technology on the supply side would considerably reduce CO2 emissions from Chinese cement production; nevertheless, the combination of rapid urbanization, GDP growth, and an ultra‐high fixed capital formation ratio on the demand side increased CO2 emissions nearly 25‐fold from 1990 to 2015. Notably, some demand‐side factors also had an effect that reduced CO2 emissions. The in‐use stock per unit of fixed capital formation and output per in‐use stock reduced CO2 emissions by 332 million metric tons, which is comparable to the contribution of technological progress. Based on these results, we examine why these demand‐side factors substantially influence CO2 emissions in the Chinese cement sector, and we provide recommendations for policy‐makers on carbon‐reduction measures in this CO2‐intensive sector.