IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v74y2019i2d10.1007_s10640-019-00351-w.html
   My bibliography  Save this article

Assessing the Role of Domestic Value Chains in China’s CO2 Emission Intensity: A Multi-Region Structural Decomposition Analysis

Author

Listed:
  • H. Wang

    (China University of Petroleum
    Institute for Energy Economics and Policy, China University of Petroleum)

  • Chen Pan

    (Nanjing University of Aeronautics and Astronautics)

  • P. Zhou

    (China University of Petroleum
    Institute for Energy Economics and Policy, China University of Petroleum)

Abstract

China has been facing severe pressure in CO2 emissions mitigation. With production fragmentation among provinces inside China, domestic value chains (DVCs) have become increasingly important to both economic growth and CO2 emissions of the country. Thus greening domestic value chains is crucial for China to achieve its climate goal. A fundamental question behind this issue is to assess the role of DVCs in China’s emission intensity and quantify the underlying drivers. To this end, a multi-region structural decomposition analysis (MR-SDA) model is proposed in this study. A change in national emission intensity is explained by two divisions of effects, i.e. local effects and DVC effects. From a forward linkage perspective, this study further disentangles the DVC production links and captures its impact on emission intensity. Applying the proposed MR-SDA model to study China’s CO2 emission intensity change in 2002–2012 shows that the DVCs hindered further emission intensity reduction of China during this period. The main determinant was the deteriorated DVC forward linkages in the central and western regions of China. More detailed results and discussions are presented.

Suggested Citation

  • H. Wang & Chen Pan & P. Zhou, 2019. "Assessing the Role of Domestic Value Chains in China’s CO2 Emission Intensity: A Multi-Region Structural Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 865-890, October.
    • Handle: RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00351-w
    DOI: 10.1007/s10640-019-00351-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10640-019-00351-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10640-019-00351-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kaltenegger, Oliver & Löschel, Andreas & Pothen, Frank, 2017. "The effect of globalisation on energy footprints: Disentangling the links of global value chains," Energy Economics, Elsevier, vol. 68(S1), pages 148-168.
    2. Ang, B.W., 2015. "LMDI decomposition approach: A guide for implementation," Energy Policy, Elsevier, vol. 86(C), pages 233-238.
    3. Ward, Hauke & Radebach, Alexander & Vierhaus, Ingmar & Fügenschuh, Armin & Steckel, Jan Christoph, 2017. "Reducing global CO2 emissions with the technologies we have," Resource and Energy Economics, Elsevier, vol. 49(C), pages 201-217.
    4. Bo Meng & Yong Fang & Jiemin Guo & Yaxiong Zhang, 2017. "Measuring China’s domestic production networks through Trade in Value-added perspectives," Economic Systems Research, Taylor & Francis Journals, vol. 29(1), pages 48-65, January.
    5. Majumdar, Devleena & Kar, Saibal, 2017. "Does technology diffusion help to reduce emission intensity? Evidence from organized manufacturing and agriculture in India," Resource and Energy Economics, Elsevier, vol. 48(C), pages 30-41.
    6. Fernández-Amador, Octavio & Francois, Joseph F. & Tomberger, Patrick, 2016. "Carbon dioxide emissions and international trade at the turn of the millennium," Ecological Economics, Elsevier, vol. 125(C), pages 14-26.
    7. Forin, Silvia & Radebach, Alexander & Steckel, Jan Christoph & Ward, Hauke, 2018. "The effect of industry delocalization on global energy use: A global sectoral perspective," Energy Economics, Elsevier, vol. 70(C), pages 233-243.
    8. Rutger Hoekstra & Bernhard Michel & Sangwon Suh, 2016. "The emission cost of international sourcing: using structural decomposition analysis to calculate the contribution of international sourcing to CO 2 -emission growth," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 151-167, June.
    9. Su, Bin & Ang, B.W., 2017. "Multiplicative structural decomposition analysis of aggregate embodied energy and emission intensities," Energy Economics, Elsevier, vol. 65(C), pages 137-147.
    10. Kenneth Gillingham & David Rapson & Gernot Wagner, 2016. "The Rebound Effect and Energy Efficiency Policy," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 68-88.
    11. Wang, H. & Ang, B.W., 2018. "Assessing the role of international trade in global CO2 emissions: An index decomposition analysis approach," Applied Energy, Elsevier, vol. 218(C), pages 146-158.
    12. Wang, H. & Zhou, P. & Zhou, D.Q., 2012. "An empirical study of direct rebound effect for passenger transport in urban China," Energy Economics, Elsevier, vol. 34(2), pages 452-460.
    13. Meng, Bo & Peters, Glen P. & Wang, Zhi & Li, Meng, 2018. "Tracing CO2 emissions in global value chains," Energy Economics, Elsevier, vol. 73(C), pages 24-42.
    14. Zhang, Youguo, 2017. "Interregional carbon emission spillover–feedback effects in China," Energy Policy, Elsevier, vol. 100(C), pages 138-148.
    15. Xie, Rui & Hu, Guangxiao & Zhang, Youguo & Liu, Yu, 2017. "Provincial transfers of enabled carbon emissions in China: A supply-side perspective," Energy Policy, Elsevier, vol. 107(C), pages 688-697.
    16. Meng, Bo & Xue, Jinjun & Feng, Kuishuang & Guan, Dabo & Fu, Xue, 2013. "China’s inter-regional spillover of carbon emissions and domestic supply chains," Energy Policy, Elsevier, vol. 61(C), pages 1305-1321.
    17. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    18. de Vries, Gaaitzen J. & Ferrarini, Benno, 2017. "What Accounts for the Growth of Carbon Dioxide Emissions in Advanced and Emerging Economies? The Role of Consumption, Technology and Global Supply Chain Participation," Ecological Economics, Elsevier, vol. 132(C), pages 213-223.
    19. Ang, B.W. & Wang, H., 2015. "Index decomposition analysis with multidimensional and multilevel energy data," Energy Economics, Elsevier, vol. 51(C), pages 67-76.
    20. Su, Bin & Ang, B.W., 2015. "Multiplicative decomposition of aggregate carbon intensity change using input–output analysis," Applied Energy, Elsevier, vol. 154(C), pages 13-20.
    21. Sorrell, Steve & Dimitropoulos, John & Sommerville, Matt, 2009. "Empirical estimates of the direct rebound effect: A review," Energy Policy, Elsevier, vol. 37(4), pages 1356-1371, April.
    22. Haiyan Zhang & Michael L. Lahr, 2014. "Can The Carbonizing Dragon Be Domesticated? Insights From A Decomposition Of Energy Consumption And Intensity In China, 1987--2007," Economic Systems Research, Taylor & Francis Journals, vol. 26(2), pages 119-140, June.
    23. Wang, H. & Zhou, P. & Xie, Bai-Chen & Zhang, N., 2019. "Assessing drivers of CO2 emissions in China's electricity sector: A metafrontier production-theoretical decomposition analysis," European Journal of Operational Research, Elsevier, vol. 275(3), pages 1096-1107.
    24. H. Wang & B.W. Ang & P. Zhou, 2018. "Decomposing aggregate CO2 emission changes with heterogeneity: An extended production-theoretical approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhong, Zhangqi & Guo, Zhifang & Zhang, Jianwu, 2021. "Does the participation in global value chains promote interregional carbon emissions transferring via trade? Evidence from 39 major economies," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    2. Chen, Jian & Zhao, Di, 2022. "Complexity of domestic production fragmentation and its impact on pollution emissions: Evidence from decomposed regional production length," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 127-137.
    3. Wang, Hui & Li, Rupeng & Zhang, Ning & Zhou, Peng & Wang, Qiang, 2020. "Assessing the role of technology in global manufacturing energy intensity change: A production-theoretical decomposition analysis," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    4. Zhang, Danyang & Wang, Hui & Löschel, Andreas & Zhou, Peng, 2021. "The changing role of global value chains in CO2 emission intensity in 2000–2014," Energy Economics, Elsevier, vol. 93(C).
    5. Yang, Yafei & Wang, Hui & Löschel, Andreas & Zhou, Peng, 2022. "Patterns and determinants of carbon emission flows along the Belt and Road from 2005 to 2030," Ecological Economics, Elsevier, vol. 192(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Danyang & Wang, Hui & Löschel, Andreas & Zhou, Peng, 2021. "The changing role of global value chains in CO2 emission intensity in 2000–2014," Energy Economics, Elsevier, vol. 93(C).
    2. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Multiplicative structural decomposition analysis of energy and emission intensities: Some methodological issues," Energy, Elsevier, vol. 123(C), pages 47-63.
    3. Yang, Yafei & Wang, Hui & Löschel, Andreas & Zhou, Peng, 2022. "Patterns and determinants of carbon emission flows along the Belt and Road from 2005 to 2030," Ecological Economics, Elsevier, vol. 192(C).
    4. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    5. Wang, H. & Ang, B.W. & Su, Bin, 2017. "A Multi-region Structural Decomposition Analysis of Global CO2 Emission Intensity," Ecological Economics, Elsevier, vol. 142(C), pages 163-176.
    6. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2023. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Ecological Economics, Elsevier, vol. 204(PA).
    7. Duan, Yuwan & Yan, Bingqian, 2019. "Economic gains and environmental losses from international trade: A decomposition of pollution intensity in China's value-added trade," Energy Economics, Elsevier, vol. 83(C), pages 540-554.
    8. Zhu, Bangzhu & Su, Bin & Li, Yingzhu, 2018. "Input-output and structural decomposition analysis of India’s carbon emissions and intensity, 2007/08 – 2013/14," Applied Energy, Elsevier, vol. 230(C), pages 1545-1556.
    9. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei & Su, Bin, 2020. "Who shapes China's carbon intensity and how? A demand-side decomposition analysis," Energy Economics, Elsevier, vol. 85(C).
    10. Zhang, Xiaomei & Su, Bin & Yang, Jun & Cong, Jianhui, 2022. "Analysis of Shanxi Province's energy consumption and intensity using input-output framework (2002–2017)," Energy, Elsevier, vol. 250(C).
    11. Ling Yang & Michael L. Lahr, 2019. "The Drivers of China’s Regional Carbon Emission Change—A Structural Decomposition Analysis from 1997 to 2007," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    12. Tian, Kailan & Dietzenbacher, Erik & Yan, Bingqian & Duan, Yuwan, 2020. "Upgrading or downgrading: China's regional carbon emission intensity evolution and its determinants," Energy Economics, Elsevier, vol. 91(C).
    13. Hehua Zhao & Hongwen Chen & Lei He, 2022. "Embodied Carbon Emissions and Regional Transfer Characteristics—Evidence from China," Sustainability, MDPI, vol. 14(4), pages 1-20, February.
    14. Yan, Junna & Su, Bin, 2020. "What drive the changes in China's energy consumption and intensity during 12th Five-Year Plan period?," Energy Policy, Elsevier, vol. 140(C).
    15. Su, Bin & Ang, B.W. & Li, Yingzhu, 2019. "Structural path and decomposition analysis of aggregate embodied energy and emission intensities," Energy Economics, Elsevier, vol. 83(C), pages 345-360.
    16. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei, 2018. "How does information and communication technology affect China's energy intensity? A three-tier structural decomposition analysis," Energy, Elsevier, vol. 151(C), pages 748-759.
    17. Su, Bin & Ang, B.W. & Sun, Ya-Fang, 2022. "Input-output analysis of embodied emissions: Impacts of imports data treatment on emission drivers," Energy Economics, Elsevier, vol. 107(C).
    18. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Zhao, Zhongxiu & Jiao, Aodong, 2023. "Decomposing the carbon footprints of multinational enterprises along global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 13-28.
    19. Wang, Qunwei & Hang, Ye & Su, Bin & Zhou, Peng, 2018. "Contributions to sector-level carbon intensity change: An integrated decomposition analysis," Energy Economics, Elsevier, vol. 70(C), pages 12-25.
    20. Yan, Junna & Li, Yingzhu & Su, Bin & Ng, Tsan Sheng, 2022. "Contributors and drivers of Chinese energy use and intensity from regional and demand perspectives, 2012-2015-2017," Energy Economics, Elsevier, vol. 115(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:74:y:2019:i:2:d:10.1007_s10640-019-00351-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.