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Technological learning, energy efficiency, and CO2 emissions in China's energy intensive industries

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  • Rock, Michael T.
  • Toman, Michael
  • Cui, Yuanshang
  • Jiang, Kejun
  • Song, Yun
  • Wang, Yanjia

Abstract

Since the onset of economic reforms in 1978, China has been remarkably successful in reducing the carbon dioxide intensities of gross domestic product and industrial production. Most analysts correctly attribute the rapid decline in the carbon dioxide intensity of industrial production to rising energy prices, increased openness to trade and investment, increased competition, and technological change. China's industrial and technology policies also have contributed to lower carbon dioxide intensities, by transforming industrial structure and improving enterprise level technological capabilities. Case studies of four energy intensive industries -- aluminum, cement, iron and steel, and paper -- show how the changes have put these industries on substantially lower carbon dioxide emissions trajectories. Although the changes have not led to absolute declines in carbon dioxide emissions, they have substantially weakened the link between industry growth and carbon dioxide emissions.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6492.

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Date of creation: 01 Jun 2013
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Handle: RePEc:wbk:wbrwps:6492

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Keywords: Energy Production and Transportation; Technology Industry; ICT Policy and Strategies; Environmental Economics&Policies; Energy and Environment;

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  1. Albert G. Z. Hu & Gary H. Jefferson & Qian Jinchang, 2005. "R&D and Technology Transfer: Firm-Level Evidence from Chinese Industry," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 780-786, November.
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  3. Andrea Goldstein, 2005. "The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing," William Davidson Institute Working Papers Series wp779, William Davidson Institute at the University of Michigan.
  4. Bruce Owen & Wentong Zheng & Su Sun, 2007. "China's Competition Policy Reforms: The Antimonopoly Law and Beyond," Discussion Papers 06-032, Stanford Institute for Economic Policy Research.
  5. Rock, Michael T. & Angel, David P., 2005. "Industrial Transformation in the Developing World," OUP Catalogue, Oxford University Press, number 9780199270040.
  6. Sinton, Jonathan E & Levine, Mark D & Qingyi, Wang, 1998. "Energy efficiency in China: accomplishments and challenges," Energy Policy, Elsevier, vol. 26(11), pages 813-829, September.
  7. Price, Lynn & Wang, Xuejun & Yun, Jiang, 2010. "The challenge of reducing energy consumption of the Top-1000 largest industrial enterprises in China," Energy Policy, Elsevier, vol. 38(11), pages 6485-6498, November.
  8. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
  9. Pei Sun, 2005. "Industrial policy, corporate governance, and the competitiveness of China's national champions: The case of Shanghai Baosteel Group," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 3(2), pages 173-192.
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