Analysis of CO 2 Emissions in China’s Manufacturing Industry Based on Extended Logarithmic Mean Division Index Decomposition

Jian Liu, Qingshan Yang, Yu Zhang, Wen Sun and Yiming Xu
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Jian Liu: School of Geographical Science, Northeast Normal University, Changchun 130024, China
Qingshan Yang: School of Geographical Science, Northeast Normal University, Changchun 130024, China
Yu Zhang: School of Geographical Science, Northeast Normal University, Changchun 130024, China
Wen Sun: School of Geographical Science, Northeast Normal University, Changchun 130024, China
Yiming Xu: School of Geographical Science, Northeast Normal University, Changchun 130024, China

Sustainability, 2019, vol. 11, issue 1, 1-28

Abstract: China is the world’s largest emitter of CO 2 . As the largest sector of China’s fossil energy consumption and carbon emissions, manufacturing plays an important role in achieving emission reduction targets in China. Using the extended logarithmic mean division index (LMDI) decomposition model, this paper decomposed the factors that affect the CO 2 emissions of China’s manufacturing industry into eight effects. The results show the following: (1) China’s manufacturing CO 2 emissions increased from 1.91 billion tons in 1995 to 6.25 billion tons in 2015, with an average annual growth rate of 6%. Ferrous metal smelting and rolling were the largest sources of carbon dioxide emissions, followed by chemical raw materials and products and then non-metallic minerals. (2) During the research period, the industrial activity effects were the most important factor leading to increased CO 2 emissions in manufacturing and energy intensity was the most important factor in promoting the reduction of CO 2 emissions from manufacturing. The investment intensity was the second most influential factor leading to the increase in China’s manufacturing CO 2 emissions after the industrial scale and this even exceeded the industrial activity effect in some time periods (2000–2005). R&D efficiency and R&D intensity were shown to have significant roles in reducing CO 2 emissions in China’s manufacturing industry. The input of R&D innovation factors is an effective way to achieve emission reductions in China’s manufacturing industry. (3) There were differences in the driving factors of CO 2 emissions in the manufacturing industry in different periods that were closely related to the international and domestic economic development environment and the relevant policies of the Chinese government regarding energy conservation and emission reduction. (4) Sub-sector research found that the factors that affect the reduction of CO 2 emissions in various industries appear to be differentiated. This paper has important policy significance to allow the Chinese government to implement effective energy-saving and emission reduction measures and to reduce CO 2 emissions from the manufacturing industry.

Keywords: energy-related CO 2 emissions; extended LMDI models; investment and R&D activities; manufacturing; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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