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Decomposing aggregate CO2 emission changes with heterogeneity: An extended production-theoretical approach

H. Wang, B.W. Ang, and P. Zhou

Year: 2018
Volume: Volume 39
Number: Number 1
DOI: 10.5547/01956574.39.1.hwan
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Abstract:
Quantifying the driving forces behind changes in aggregate CO2 emissions provides valuable information for supporting policy making in addressing climate change. We study this issue using the production-theoretical decomposition analysis (PDA) technique. Within a production theory framework, PDA examines CO2 emission changes from the perspective of productive efficiency. Although regional and sectoral heterogeneities in energy consumption and emission patterns prevail, they have not been taken into account in the PDA literature. By incorporating relevant decomposition methods, this study proposes an extended PDA approach to resolving the heterogeneity issue. The approach is applied to examine China's aggregate CO2 emission changes in its 11th five-year plan period (2005- 2010). By accounting for the heterogeneities, detailed results at the regional and sectoral levels are generated and further discussions presented.



Does Global Value Chain Participation Decouple Chinese Development from CO2 Emissions? A Structural Decomposition Analysis

Hui Wang, Chen Pan, B.W. Ang, and Peng Zhou

Year: 2021
Volume: Volume 42
Number: Number 2
DOI: 10.5547/01956574.42.2.hwan
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Abstract:
Decoupling economic activities and CO2 emissions is central to achieving the climate goals of China. The country�s participation in global value chains has profound impacts on its economy as well as CO2 emissions. Assessing the impacts is fundamental to identifying strategies to decouple China�s development from emissions. To this end, we adopt the multi-region structural decomposition analysis technique to quantify the global value chain determinants of China�s CO2 emission intensity from both the production and consumption perspectives. It is found that China�s decoupling from emissions in 2007�2012 was driven mainly by global value chains. Nonetheless the decoupling slowed down after the global financial crisis. In particular, the value chains within China played a more important role in greening Chinese economy. Despite the considerable improvement in 2007�2012, global value chains remained the primary obstacle to environmental sustainability of China. More detailed results with policy implications are presented.





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