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Energy consumption and CO2 emissions in China's cement industry: A perspective from LMDI decomposition analysis

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  • Xu, Jin-Hua
  • Fleiter, Tobias
  • Eichhammer, Wolfgang
  • Fan, Ying

Abstract

We analyze the change of energy consumption and CO2 emissions in China's cement industry and its driving factors over the period 1990–2009 by applying a log-mean Divisia index (LMDI) method. It is based on the typical production process for clinker manufacturing and differentiates among four determining factors: cement output, clinker share, process structure and specific energy consumption per kiln type. The results show that the growth of cement output is the most important factor driving energy consumption up, while clinker share decline, structural shifts mainly drive energy consumption down (similar for CO2 emissions). These efficiency improvements result from a number of policies which are transforming the entire cement industry towards international best practice including shutting down many older plants and raising the efficiency standards of cement plants. Still, the efficiency gains cannot compensate for the huge increase in cement production resulting from economic growth particularly in the infrastructure and construction sectors. Finally, scenario analysis shows that applying best available technology would result in an additional energy saving potential of 26% and a CO2 mitigation potential of 33% compared to 2009.

Suggested Citation

  • Xu, Jin-Hua & Fleiter, Tobias & Eichhammer, Wolfgang & Fan, Ying, 2012. "Energy consumption and CO2 emissions in China's cement industry: A perspective from LMDI decomposition analysis," Energy Policy, Elsevier, vol. 50(C), pages 821-832.
    • Handle: RePEc:eee:enepol:v:50:y:2012:i:c:p:821-832
    DOI: 10.1016/j.enpol.2012.08.038
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    References listed on IDEAS

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