Influencing factors of energy-related CO2 emissions in China: A decomposition analysis

Abstract

China is the largest CO2 emitter in the world and is still reliant on energy consumption for economic growth. Research has focused on effective approaches of reducing and mitigating CO2 emissions. This paper undertakes a decomposition study of energy-related CO2 emissions from the industrial and household sectors during the period 1996-2012, with the objectives of investigating trends of the changes in energy-related CO2 emissions, the driving forces of these changes, and approaches of mitigating CO2 emission. Results show the following: (1) the expansion of economic activity is the dominant stimulatory factor of the increase of CO2 emissions in China and that a sustained increase in CO2 emissions can be expected; (2) the decline in energy intensity and the adjustment of energy mix and industrial structure effectively mitigate CO2 emissions; and (3) the government should give more attention to enhancing the energy utility efficiency and reducing CO2 emissions in rural households.