Different effects of technological progress on China's carbon emissions based on sustainable development

Jiandong Chen, Ming Gao, Ke Ma and Malin Song

Business Strategy and the Environment, 2020, vol. 29, issue 2, 481-492

Abstract: In this paper, we respectively decompose and study different effects of technological progress on carbon emissions in China based on the combination of the logarithmic mean Divisia index method, the Solow residual model, and spatial econometrics. Furthermore, we propose an improved approach to estimate the rebound effect index. By comparing the different effects of technological progress on carbon emissions, our results indicate that China's overall domestic technological progress reduced its carbon emissions over this period. As for the rebound effect index, the estimated results are higher than in previous studies because of the spatial rebound effect, which was ignored by previous studies. Regionally, although the eastern region had high rebound effects, the western region is at the greatest risk from the rebound effects. Finally, we present specific environmental policy proposals for China's sustainable development based on empirical results.

Date: 2020
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