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The Driving Force of CO2 Reduction in China’s Industries

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  • Lu Liu

    (School of Economics, Jinan University, Guangzhou, China)

  • Chengzhao You

    (College of Business and Economics, Australian National University, Canberra, Australia)

Abstract

We employ the joint production decomposition model to conduct a full decomposition of CO2 emission among 36 industrial sectors in China from 1998 to 2011, under the framework of growth accounting. The results show that: (1) the average CO2 emission increases at an annual rate of 3.01%, and production technology progression is the main driving force, while the transformation toward clean production effectively curb the rapid growth of CO2 emissions; (2) the effect of technology changes on CO2 emission is larger during the "10th Five-Year Plan" compared with the "11th Five-Year Plan", which makes the annual growth rate of CO2 emission during the "11th Five-Year Plan" 1% lower than its counterpart; This study has important theoretical and practical significance for understanding the driving factors of CO2 emission and the corresponding emission reduction measures.

Suggested Citation

  • Lu Liu & Chengzhao You, 2022. "The Driving Force of CO2 Reduction in China’s Industries," Financial Economics Letters, Anser Press, vol. 1(1), pages 37-44, December.
    • Handle: RePEc:bba:j00007:v:1:y:2022:i:1:p:37-44:d:127
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    References listed on IDEAS

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