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Carbon dioxide emissions and growth of the manufacturing sector: Evidence for China

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  • Lin, Boqiang
  • Moubarak, Mohamed
  • Ouyang, Xiaoling

Abstract

Reduction of carbon dioxide emissions without negatively affecting the industrial growth is a dilemma for industries in China. On this issue, an empirical study is provided on the relation between carbon dioxide (CO2) emissions and industrial growth in the Chinese manufacturing sector. The ARDL (autoregressive distributed lag) bounds testing and cointegration analysis are applied in a multivariate framework including energy consumption and price from 1980 to 2012. Results show the existence of a long-run equilibrium relationship between carbon dioxide emissions and industrial growth; indicating that application of measures leading to carbon dioxide reduction may not negatively affect the growth of the manufacturing sector. In the short term, there is no causality running from energy consumption to industrial growth. Additionally, there is causality between energy price and energy consumption. However in the long term, industrial growth may affect energy consumption, which in return may have influence on carbon dioxide emissions; suggesting that there is a reduction potential of energy consumption and CO2 emissions in the Chinese manufacturing sector without threatening industrial growth. In effect, some policy suggestions are provided for appropriate measures.

Suggested Citation

  • Lin, Boqiang & Moubarak, Mohamed & Ouyang, Xiaoling, 2014. "Carbon dioxide emissions and growth of the manufacturing sector: Evidence for China," Energy, Elsevier, vol. 76(C), pages 830-837.
  • Handle: RePEc:eee:energy:v:76:y:2014:i:c:p:830-837
    DOI: 10.1016/j.energy.2014.08.082
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    Cited by:

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    2. Rahman, Md Saifur & Junsheng, Ha & Shahari, Farihana & Aslam, Mohamed & Masud, Muhammad Mehedi & Banna, Hasanul & Liya, Ma, 2015. "Long-run relationship between sectoral productivity and energy consumption in Malaysia: An aggregated and disaggregated viewpoint," Energy, Elsevier, vol. 86(C), pages 436-445.
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    4. Xueping Tao & Ping Wang & Bangzhu Zhu, 2016. "Measuring the Interprovincial CO 2 Emissions Considering Electric Power Dispatching in China: From Production and Consumption Perspectives," Sustainability, MDPI, Open Access Journal, vol. 8(6), pages 1-12, May.
    5. repec:eee:energy:v:144:y:2018:i:c:p:887-902 is not listed on IDEAS
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    8. Rahman, Md. Saifur & Noman, Abu Hanifa Md. & Shahari, Farihana & Aslam, Mohamed & Gee, Chan Sok & Isa, Che Ruhana & Pervin, Sajeda, 2016. "Efficient energy consumption in industrial sectors and its effect on environment: A comparative analysis between G8 and Southeast Asian emerging economies," Energy, Elsevier, vol. 97(C), pages 82-89.

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    Keywords

    CO2 emissions; Manufacturing sector; Granger causality; China;

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