Unstable decoupling of CO2 emissions from sectoral economic growth calls for decarbonization policies based on multi-perspective accounting: a case study of Zhejiang, China.

Abstract

Decoupling CO2 emissions from economic growth is an important cornerstone of a country's decarbonization policy. Existing research in this avenue has mainly focused on decoupling the production-based (PB) CO2 emissions from economic growth at the national level, while decoupling the consumption-based (CB) and income-based (IB) CO2 emissions from economic growth, especially at the sectoral level, has received less attention. Using China's Zhejiang province as a case study, we conduct one of the first studies focused on decoupling the PB, CB, and IB CO2 emissions from economic growth at the sectoral level. Our results reveal that (1) during 2002-2017, the sectoral decoupling level varies greatly among the three different perspectives; (2) most of the examined sectors were in unstable decoupling states while some sectors even reverted to coupling states; and (3) the drivers of CO2 emissions at the sectoral level reveal important factors, such as emissions intensity, production structure, and final demand structure, that contribute toward decarbonization. Our study demonstrates to policymakers how utilizing a multi-perspective evaluation of the decoupling of emissions from sectoral economic growth can improve the accuracy of decarbonization policies and identify critical sectors toward CO2 reduction objectives.