Using LMDI method to analyze the influencing factors of carbon emissions in China’s petrochemical industries

Abstract

China’s petrochemical industries are playing an important role in China’s economic development. However, the industries consume large amounts of energy and have become primary sources of carbon emission. In this paper, the change in carbon emissions from China’s petrochemical industries between 2000 and 2010 was quantitatively analyzed with the Log-Mean Divisia Index method, which was decomposed into economic output effect, industrial structural effect and technical effect. The results show that economic output effect is the most important factor driving carbon emission growth in China’s petrochemical industries; industrial structural effect has certain decrement effect on carbon emissions; adjustment of industrial structure by developing low-carbon emission industrial sectors may be a better choice for reducing carbon emissions; and the impact of technical effect varies considerably without showing any clear decrement effect trend over the period of year 2000–2010. The biggest challenge is how to make use of these factors to balance the relationship between economic development and carbon emissions. This study will promote a more comprehensive understanding of the inter-relationships of economic development, industrial structural shift, technical effect and carbon emissions in China’s petrochemical industries and is helpful for exploration of relevant strategies to reduce carbon emissions.