Uncovering the driving forces of carbon dioxide emissions in Chinese manufacturing industry: An intersectoral analysis.

As the pillar of national economy, manufacturing industry is the largest primary energy consumer and emitter of carbon dioxide (CO2) in China. Therefore, capturing the determinants of CO2 emissions in manufacturing industry is extremely important for national efforts to mitigate carbon emissions. This paper explores the major driving forces behind CO2 emission changes in China's manufacturing industry during 2000-2015 from perspectives of the whole sector and 28 subsectors, by applying the temporal logarithmic mean Divisia index (LMDI) method. Moreover, an intersectoral LMDI model is built to uncover the intersectoral discrepancies of CO2 emissions among 28 subsectors. The temporal analysis indicates that industrial activity and energy intensity are crucial factors respectively contributing to the increase and mitigation of CO2 emissions. The intersectoral analysis reveals that energy intensity is the dominant factor responsible for the intersectoral discrepancies of CO2 emissions among 28 subsectors. The great mitigation towards CO2 emissions can be achieved if energy efficiency is largely improved in carbon-intensive subsectors. Priority should be given by governments to the industrial technology advancement, such as subsidies for energy-saving technological transformation and promotion of international advanced techniques and equipment, which can greatly improve production efficiency and mitigate emissions in manufacturing industry.

How does green technology influence CO2 emission in China?--An empirical research based on provincial data of China.

This paper investigates the role of green innovations aimed at reducing carbon dioxide emissions as a factor that compensates for growth and population effects. It has been shown from tests that the positive effect of green innovations on carbon emissions exists within a STIRPAT framework from a local perspective. The panel data is derived from China Statistical Yearbook and China Intellectual Property Office covered from 1999 to 2013. In addition,the static panel model was run to estimate the diversity among three typical regions of China. The main result shows that the green technology change has not played a dominant role yet in promoting environmental protection, while a scale effect (Affluence and Population)still prevails, although green patents show positive influences on the CO2 emission reduction inthe whole country as well as the East and West regions, except the Central region. Moreover, it turns out that the classical EKC hypothesis does stand in China, referring to the three regions with the inverted "U" shape. The analysis gives suggestions to the policy makers, which would support enlarging the investment scale on green patents and encourage international corporation with environmental related innovations.