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Impacts of Disaggregate Energy Prices on Disaggregate Energy CO2 Emissions: Evidence from China

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  • Chen, Hong
  • Singh, Baljeet

Abstract

This study attempts to explore the measures to reduce CO2 emissions caused by energy consumption. This is made possible by investigating the impacts of energy price, energy consumption and their interaction on CO2 emissions, using times series data on three sources of energy, namely fossil fuel, coal and gas, over 1984-2013 in China. Empirical analysis suggests that higher oil and coal prices do not reduce CO2 emissions induced from oil and coal consumption respectively, but higher gas price reduces CO2 emissions from gas consumption. The study further reveals that interactions between disaggregate fuel prices and corresponding energy consumption are negatively associated with CO2 emissions induced from consumption of respective energy sources; this makes us believe that tax on energy consumption exceeding threshold levels would effectively hurdle further increases in CO2 emissions induced from consumption of all three sources of energy.

Suggested Citation

  • Chen, Hong & Singh, Baljeet, 2018. "Impacts of Disaggregate Energy Prices on Disaggregate Energy CO2 Emissions: Evidence from China," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 8(2), pages 126-143.
    • Handle: RePEc:gok:ijdcv1:v:8:y:2018:i:2:p:126-143
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