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Driving factors behind carbon dioxide emissions in China: A modified production-theoretical decomposition analysis

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  • Wang, Qunwei
  • Chiu, Yung-Ho
  • Chiu, Ching-Ren

Abstract

Research on the driving factors behind carbon dioxide emission changes in China can inform better carbon emission reduction policies and help develop a low-carbon economy. As one of important methods, production-theoretical decomposition analysis (PDA) has been widely used to understand these driving factors. To avoid the infeasibility issue in solving the linear programming, this study proposed a modified PDA approach to decompose carbon dioxide emission changes into seven drivers. Using 2005–2010 data, the study found that economic development was the largest factor of increasing carbon dioxide emissions. The second factor was energy structure (reflecting potential carbon), and the third factor was low energy efficiency. Technological advances, energy intensity reductions, and carbon dioxide emission efficiency improvements were the negative driving factors reducing carbon dioxide emission growth rates. Carbon dioxide emissions and driving factors varied significantly across east, central and west China.

Suggested Citation

  • Wang, Qunwei & Chiu, Yung-Ho & Chiu, Ching-Ren, 2015. "Driving factors behind carbon dioxide emissions in China: A modified production-theoretical decomposition analysis," Energy Economics, Elsevier, vol. 51(C), pages 252-260.
  • Handle: RePEc:eee:eneeco:v:51:y:2015:i:c:p:252-260
    DOI: 10.1016/j.eneco.2015.07.009
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    Keywords

    Carbon dioxide; Driving factors; PDA;

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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