Emissions reduction in China׳s chemical industry – Based on LMDI

Abstract

China׳s chemical industry is the second largest industrial source of carbon emissions. This article employs the LMDI to explore the driving factors of carbon emissions changes in China׳s chemical industry utilizing time series data and provincial panel data. We find that output per worker, industrial economic scale, energy intensity and energy structure were the main factors that influenced carbon emissions changes in the chemical industry. Based on the time series, energy intensity and energy structure are conducive for decrease in carbon emissions, while output per worker and industrial economic scale were the aggravating drivers for carbon emissions increase. We further analyze the driving factors of carbon emissions in every province. Finally, we suggest some policy implications such as applying low-carbon equipment, improving energy structure, promoting energy efficiency, etc for reducing carbon emissions.