Economic Structure Transformation and Low-Carbon Development in Energy-Rich Cities: The Case of the Contiguous Area of Shanxi and Shaanxi Provinces, and Inner Mongolia Autonomous Region of China

Hongli Zhang, Lei Shen, Shuai Zhong and Ayman Elshkaki
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Hongli Zhang: Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
Lei Shen: Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
Shuai Zhong: Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
Ayman Elshkaki: Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China

Sustainability, 2020, vol. 12, issue 5, 1-14

Abstract: Energy-rich cities tend to rely on resource-based industries for economic growth, which leads to a great challenge for its low-carbon and sustainable economic development. The contiguous area of Shanxi and Shaanxi Provinces, and the Inner Mongolia Autonomous Region (SSIM) is one of the most important national energy bases in China. Its development pattern, dominated by the coal industry, has led to increasingly prominent structural problems along with difficult low-carbon transition. Taking energy-rich cities in the contiguous area of SSIM as examples, this study analyzes the main drivers of CO 2 emissions and explores the role of economic structure transformation in carbon emission reduction during 2002–2012 based on structural decomposition analysis (SDA). The results show that CO 2 emissions increase significantly with the coal industry expansion in energy-rich cities. Economic growth and structure are the main drivers of CO 2 emission increments. An energy structure dominated by coal and improper product allocation structure can also cause CO 2 emission increases. Energy consumption intensity is the main factor curbing CO 2 emission growth in energy-rich cities. The decline of agriculture and services contributes to carbon emission reduction, while the expansion of mining and primary energy processing industries has far greater effects on CO 2 emission growth. Finally, we propose that energy-rich cities must make more efforts to transform energy-driven economic growth patterns, cultivate new pillar industries by developing high-end manufacturing, improve energy efficiency through more investment in key technologies and the market-oriented reform of energy pricing and develop natural gas and renewable energy to accelerate low-carbon transition.

Keywords: CO 2 emissions; economic structure; structural decomposition analysis; energy-rich cities (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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