Research of Carbon Emission Reduction Potentials in the Yellow River Basin, Based on Cluster Analysis and the Logarithmic Mean Divisia Index (LMDI) Method

Jingcheng Li and Menggang Li
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Jingcheng Li: School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China
Menggang Li: Beijing Laboratory of National Economic Security Early-Warning Engineering, Beijing Jiaotong University, Beijing 100044, China

Sustainability, 2022, vol. 14, issue 9, 1-16

Abstract: China has implemented many green transition policies to reach its carbon peak target, some of which do not consider the actual carbon reduction pressures that localities can afford, thus lowering the living standards of residents and economic growth, which makes the green transition process unsustainable. The Yellow River Basin plays an important role in China’s energy, food, manufacturing, and ecological sectors. Thus, the design of green transition policies in the region needs to be modest and efficient. Based on the data of 100 prefecture-level cities in the Yellow River Basin from 2006 to 2017, this paper uses the K-means clustering to divide the carbon reduction potential of cities into four types. Most cities’ carbon reduction potentials are low or medium, unsuitable for adopting a rapid green transition. Based on the logarithmic mean Divisia index (LMDI) decomposition results and the carbon reduction potential, we designed different carbon-control pathways: Shandong and Henan should focus on increasing investment in green technology, especially oxy-combustion technology; Gansu, Ningxia, and Qinghai could partially offset carbon emissions through land use, land-use change and forestry (LULUCF) activities; Sichuan and Inner Mongolia should increase their energy-use efficiency; Shaanxi and Shanxi could use green finance to complete the upgrading of local industries. The above emission-reduction strategies can be actively pursued in cities with high emission reduction potential and should be implemented with caution in cities with low emission reduction potential. This paper provides a new and cost-effective perspective on carbon emission control in the Yellow River Basin.

Keywords: Yellow River; carbon emission reduction potential; cluster analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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