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How does industrial structure adjustment reduce CO2 emissions? Spatial and mediation effects analysis for China

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  • Zhao, Jun
  • Jiang, Qingzhe
  • Dong, Xiucheng
  • Dong, Kangyin
  • Jiang, Hongdian

Abstract

To accelerate industrial structure adjustment and effectively mitigate carbon dioxide (CO2) emissions, this study aims to investigate the carbon emission reduction effect of China's industrial structure adjustment. For this purpose, considering the potential spatial effect, the spatial econometric technique is utilized. Also, the industrial structure adjustment is divided into industrial structure upgrading and industrial structure optimization for heterogeneous analysis. Then, we empirically explore the mediating role of energy efficiency in the relationship between industrial structure adjustment and CO2 emissions in China. Three findings are drawn from the estimation results: (1) the index of industrial structure upgrading in China has gradually increased, while the index of industrial structure optimization has displayed a slightly downward trend; (2) industrial structure upgrading shows a significant spatial negative correlation with CO2 emissions, while industrial structure optimization affects CO2 emissions positively; and (3) industrial structure upgrading can reduce CO2 emissions by improving energy efficiency, and industrial structure optimization can exacerbate the greenhouse effect by impeding energy efficiency improvements. Based on these findings, we make several policy suggestions for mitigating CO2 emissions and promoting industrial structure adjustment in China.

Suggested Citation

  • Zhao, Jun & Jiang, Qingzhe & Dong, Xiucheng & Dong, Kangyin & Jiang, Hongdian, 2022. "How does industrial structure adjustment reduce CO2 emissions? Spatial and mediation effects analysis for China," Energy Economics, Elsevier, vol. 105(C).
    • Handle: RePEc:eee:eneeco:v:105:y:2022:i:c:s0140988321005557
    DOI: 10.1016/j.eneco.2021.105704
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    More about this item

    Keywords

    CO2 emissions; Industrial structure adjustment; Spatial spillover effect; Mediation effect analysis; China;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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