Decomposition Analysis of CO2 Emissions in Northeast China: Insights From Investment Factors

Abstract

Global warming caused by carbon emissions is a central concern across the world. Given the immense contribution of Northeast China to total carbon dioxide emissions, this study explores the driving forces of carbon emissions in that region from the perspective of investment-related factors, applying a logarithmic mean Divisia index (LMDI) model. We assess the driving forces on carbon emissions using a temporal LMDI model and explore interregional differences using a spatial LMDI model. The main findings are as follows. First, the trajectory of investment evolution is consistent with the mitigation of carbon emissions, which indicates that investment-related factors have a significant impact on carbon emissions. Second, the region’s carbon emissions are mainly generated by industry in Inner Mongolia and Liaoning, which suggests that the industry structure in Inner Mongolia should be adjusted to improve its coal-based energy consumption. In Liaoning, in contrast, the investment efficiency effect is a major driving force, which suggests that the regional investment structure should be adjusted to generate a more significant and orderly momentum. Lastly, although the impact of industry structure on carbon emission mitigation has significantly increased over time in Northeast China, local policy needs to be updated regularly. In line with these findings, several potential suggestions are offered for the formulation of practical and appropriate guidelines by the regional government.