Decomposition analysis: Change of carbon dioxide emissions in the Chinese textile industry

Abstract

We analyzed the change of energy-related carbon dioxide (CO2) emissions in the Chinese textile industry from 1986 to 2010. Decomposition analysis based on Logarithmic Mean Divisia Index method was applied and the study period was split into five time intervals for easier data management. Results show that industrial activity and energy intensity were the main determinants of change in carbon dioxide emissions. Industrial activity was the major factor that contributed to the increase of CO2 emissions. Energy intensity had a volatile trend interchanging intervals of growth (increasing and decreasing) along the study period. Furthermore, energy mix and carbon intensity equally decreased the CO2 emissions. Industrial scale, despite limited effect also contributed to the increase of CO2 emissions. In the meantime, while industrial output in the Chinese textile industry increased annually by 5% from 1986 to 2010, energy consumption grew by 4% with corresponding increase of CO2 emissions by 2%. Finally, we provide policy suggestions that may be adopted to significantly cut down CO2 emissions from the Chinese textile industry.