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Optimal economic restructuring to reduce carbon emissions intensity using the projected gradient algorithm

Author

Listed:
  • Canh Q. Le

    (National Economics University)

  • Hoang-Mai T. Bui

    (National Economics University)

Abstract

This paper proposes the projected gradient algorithm to find a solution that allows economic restructuring to minimize carbon emission intensity and not hinder targeted economic growth. It develops a general formula to calculate how much each sector should change its share in gross domestic products and its emission intensity such that the economy can have a lower aggregate emission intensity without hindering economic growth. Used data for 30 nations during 1997–2009, the study indicates that if a country follows this proposed optimal restructuring solution, it experiences a lower carbon emission intensity than its initial scenario. This solution is helpful to (1) find the optimal direction and quantitative solutions of a low emission economic structure; (2) continuously check and quantify the differences between the optimal and actual directions of economic structuring for adjusting economic and environmental policies.

Suggested Citation

  • Canh Q. Le & Hoang-Mai T. Bui, 2022. "Optimal economic restructuring to reduce carbon emissions intensity using the projected gradient algorithm," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6271-6287, May.
    • Handle: RePEc:spr:endesu:v:24:y:2022:i:5:d:10.1007_s10668-021-01701-9
    DOI: 10.1007/s10668-021-01701-9
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    References listed on IDEAS

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    More about this item

    Keywords

    Carbon emission intensity; Economic growth; Optimal economic structuring; Projected gradient method;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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