Ageing Impact on the Economy and Emissions in China: A Global Computable General Equilibrium Analysis

Taoyuan Wei (), Qin Zhu and Solveig Glomsrød
Additional contact information
Qin Zhu: School of Social Development and Public Policy, Fudan University, Shanghai 200433, China
Solveig Glomsrød: CICERO Center for International Climate Research, P.O. Box 1129 Blindern, 0318 Oslo, Norway

Energies, 2018, vol. 11, issue 4, 1-13

Abstract: Population ageing will accelerate in the coming decades in China. This ageing may have considerable impact on the economy and energy-related emissions, potentially affecting the global economy and global climate. By using a global computable general equilibrium (CGE) model we explore the impact caused by the population ageing through imposing the expected 2050 age structure on the economy and population size of 2011. Results show that gross domestic product (GDP) of China is reduced by nearly 10% as the ageing reduces consumption, labor supply and investments. However, increasing returns to capital abroad adds support to domestic demand. Ageing process in other countries can double ageing impacts on domestic consumption and encourage only a few production sectors in China. Global energy-related emissions is reduced by 700 Mt carbon dioxide (or about 70% of the 2011 emissions in Japan) due to the population ageing in China.

Keywords: population ageing; age-specific consumption; economic growth; carbon emissions; computable general equilibrium (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.mdpi.com/1996-1073/11/4/817/pdf (application/pdf)
https://www.mdpi.com/1996-1073/11/4/817/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:11:y:2018:i:4:p:817-:d:139189

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().