Decomposition analysis of carbon emissions: Considering China’s energy efficiency

Abstract

Carbon emissions reduction has become a public concern since Paris Climate Conference in 2015, while energy efficiency improvements and the development of clean energy are crucial to carbon reduction. To investigate carbon dioxide emissions in China at different phases in 2000–2016, this research adopts the logarithmic mean Divisia index (LMDI) technique to study four drivers: population, economic development level, energy intensity, and carbon emission intensity. The results show that: (1) The rate of increase in CO2 emissions has decreased from an average of 10.6% in 2000–2011 to 0.79% in 2011–2016; (2) Declining energy intensity (-39.89%) is the largest contributor to China’s carbon reduction among the four drivers in 2012–2016, followed by declining carbon emission intensity (-9%); (3) With rising energy efficiency and increased use of clean energy, China is transitioning to a sustainable economy. More innovative green technologies should be employed to enhance the efficiency of energy use and optimize energy structure to combat climate change.