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A CGE analysis to study the impacts of energy investment on economic growth and carbon dioxide emission: A case of Shaanxi Province in western China

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  • Lu, Chuanyi
  • Zhang, Xiliang
  • He, Jiankun

Abstract

A two-region ten-sector computable general equilibrium (CGE) model was built to analyze the effects of investment growth in the energy sectors of western areas of China on the local economy and emission of carbon dioxide (CO2). There are three different scenarios in the quantitative analysis for the investment increase in energy sectors of the western areas. The investment to energy sectors is increased at the rate of 20%, 40%, and 60%. Based on Shaanxi Province's 2002 input–output table, the change of some macro-economic variables is simulated under these scenarios. The results show that the GDP growth is at 0–8.92%, households disposable income growth is at 0–8.94%, and emission of carbon dioxide growth is at 0–11.10% when the investment growth is at 0–60%. The oil and gas sector is the most effective sector with a growth rate of 0–19.47%.

Suggested Citation

  • Lu, Chuanyi & Zhang, Xiliang & He, Jiankun, 2010. "A CGE analysis to study the impacts of energy investment on economic growth and carbon dioxide emission: A case of Shaanxi Province in western China," Energy, Elsevier, vol. 35(11), pages 4319-4327.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:11:p:4319-4327
    DOI: 10.1016/j.energy.2009.04.007
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    References listed on IDEAS

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    1. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
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