Abstract

With China’s rapid economic growth, energy-related CO2 emissions have experienced a dramatic increase. Quantification of energy-related CO2 emissions that occur in China is of serious concern for the policy makers to make efficient environmental policies without damaging the economic growth. Examining 33 productive sectors in China, this paper combined the extended “Kaya identity” and “IPAT model” with the Log-Mean Divisia Index Method (LMDI) to analyze the contribution of various factors driving of energy-related CO2 emissions in China during 1995–2009. Empirical results show that the main obstacle that hinders China’s transition to a green energy economy is the economic structure characterized by high carbon emissions. In contrast, the increased proportion of renewable energy sources (RES) and the improvement of energy efficiency play a more important role in reducing carbon emissions. Moreover, the power sector has a pivotal position in CO2 emissions reduction, primarily because of the expansion of electricity consumption. These findings suggest that policies and measures should be considered for various industrial sectors to maximize the energy efficiency potential. In addition, optimizing the industrial structure is more urgent than adjusting the energy structure for China.

Highlights

  • From the perspective of different sectors, this paper addresses the topic of a green energy economy, focusing on CO2 emissions and investigates energy efficiency and the role of Renewable Energy Sources (RES), which are regard as the main factors to offset increased CO2 emissions

  • From the perspective of 33 sectors, this paper investigated the factors influencing changes in CO2 emission and emphasized on the role of renewable energy system or RES

  • The main results of the study are as follows: Economic activity played a significant role in increased CO2 emissions

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Summary

Background information

Climate change is one of the most challenging world issues in this century [1]. As the primary greenhouse gas (GHG), CO2 emissions contribute approximately 60% of the total greenhouse effect in the world [2,3]. For 2030, the carbon intensity must be reduced by 60%–65% (40%–45% for 2020) of 2005 levels and new energy, including nuclear and Renewable Energy Sources (RES), must account for 20% in the energy matrix (15% for 2020). To achieve these commitments, precise quantification of the CO2 emissions change in China is critical. WIOD provides National Input–Output tables and data on energy use and, CO2 emissions of 35 productive sectors that can be used in comparative analysis between the different sectors. It is possible to compare the effects of different sectors on CO2 emissions in a particular year.

Literature Review
Methodologies
Database
27 Financial Intermediation
32 Health and Social Work
Empirical Results and Analyses
Conclusions and Policy Implications

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