Management Review ›› 2023, Vol. 35 ›› Issue (1): 3-15.

• Economic and Financial Management •     Next Articles

Analysis of the Driving Forces of Changes in China’s CO2 Emissions Considering Inter-provincial Trade Structure

Pan Chen1, Li Shantong2, He Jianwu2, Zhou Peng3, Zhou Dequn4   

  1. 1. School of Public Policy & Management, Tsinghua University, Beijing 100084;
    2. Development Research Center of the State Council, Beijing 100010;
    3. School of Economics and Management, China University of Petroleum, Qingdao 266580;
    4. College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106
  • Received:2021-02-05 Online:2023-01-28 Published:2023-02-27

Abstract: China is a major CO2 emitter and has a strong determination to reduce its CO2 emissions. Therefore, the driving forces for the increase in its emissions have caused attention widely. Meanwhile, the inter-regional trade structure has become a potential significant factor for China’s emission growth, which has not been investigated in the existing studies. To this end, this study takes changes in the inter-provincial trade structure into consideration and adopts a two-stage six-factor structural decomposition analysis method based on China’s provincial multi-regional input-output model to explore the driving forces for the increase in China’s CO2 emissions during the important development period of 2002-2012. Results show that during the period 2007-2012, changes in the structure of inter-provincial trade showed a carbon-intensive trend. The upward emission effects from the growth in the scale of final demand were mainly driven by exports as well as investment in the eastern provinces during the period 2002-2007, but driven mainly by increases in provincial investment in the following period. At the sectoral level, the CO2 intensity of electricity production had been continuously improved during the study period, and that of the production of non-metallic mineral products, metal rolled and processed products had also been improved to a certain extent. However, electricity consumption in the construction and service industries had increased. In the future, measurements for improving CO2 intensity and production technology on the production side could be combined with guidance of consumption preference on the demand side. Meanwhile, low-carbon development cooperation based on the inter-regional industrial chain could also play a role in reducing China’s CO2 emissions.

Key words: CO2 emissions, driving forces, inter-provincial trade structure, structural decomposition analysis, multi-regional inputoutput model