IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v87y2015icp28-38.html
   My bibliography  Save this article

Changes in carbon intensity in China's industrial sector: Decomposition and attribution analysis

Author

Listed:
  • Liu, Nan
  • Ma, Zujun
  • Kang, Jidong

Abstract

The industrial sector accounts for 70% of the total energy-related CO2 emissions in China. To gain a better understanding of the changes in carbon intensity in China's industrial sector, this study first utilized logarithmic mean Divisia index (LMDI) decomposition analysis to disentangle the carbon intensity into three influencing factors, including the emission coefficient effect, the energy intensity effect, and the structure effect. Then, the analysis was furthered to explore the contributions of individual industrial sub-sectors to each factor by using an extension of the decomposition method proposed in Choi and Ang (2012). The results indicate that from 1996 to 2012, the energy intensity effect was the dominant factor in reducing carbon intensity, of which chemicals, iron and steel, metal and machinery, and cement and ceramics were the most representative sub-sectors. The structure effect did not show a strong impact on carbon intensity. The emission coefficient effect gradually increased the carbon intensity, mainly due to the expansion of electricity consumption, particularly in the metal and machinery and chemicals sub-sectors. The findings suggest that differentiated policies and measures should be considered for various industrial sub-sectors to maximize the energy efficiency potential. Moreover, readjusting the industrial structure and promoting clean and renewable energy is also urgently required to further reduce carbon intensity in China's industrial sector.

Suggested Citation

  • Liu, Nan & Ma, Zujun & Kang, Jidong, 2015. "Changes in carbon intensity in China's industrial sector: Decomposition and attribution analysis," Energy Policy, Elsevier, vol. 87(C), pages 28-38.
  • Handle: RePEc:eee:enepol:v:87:y:2015:i:c:p:28-38
    DOI: 10.1016/j.enpol.2015.08.035
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421515300793
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2015.08.035?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jiankun, He & Zhiwei, Yu & Da, Zhang, 2012. "China's strategy for energy development and climate change mitigation," Energy Policy, Elsevier, vol. 51(C), pages 7-13.
    2. Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
    3. Choi, Ki-Hong & Oh, Wankeun, 2014. "Extended Divisia index decomposition of changes in energy intensity: A case of Korean manufacturing industry," Energy Policy, Elsevier, vol. 65(C), pages 275-283.
    4. Napp, T.A. & Gambhir, A. & Hills, T.P. & Florin, N. & Fennell, P.S, 2014. "A review of the technologies, economics and policy instruments for decarbonising energy-intensive manufacturing industries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 616-640.
    5. Kang, Jidong & Zhao, Tao & Liu, Nan & Zhang, Xin & Xu, Xianshuo & Lin, Tao, 2014. "A multi-sectoral decomposition analysis of city-level greenhouse gas emissions: Case study of Tianjin, China," Energy, Elsevier, vol. 68(C), pages 562-571.
    6. Kim, Yong-Gun & Yoo, Jonghyun & Oh, Wankeun, 2015. "Driving forces of rapid CO2 emissions growth: A case of Korea," Energy Policy, Elsevier, vol. 82(C), pages 144-155.
    7. Ang, B. W. & Choi, Ki-Hong, 2002. "Boundary problem in carbon emission decomposition," Energy Policy, Elsevier, vol. 30(13), pages 1201-1205, October.
    8. B. W. Ang & Ki-Hong Choi, 1997. "Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-73.
    9. Choi, Ki-Hong & Ang, B.W., 2012. "Attribution of changes in Divisia real energy intensity index — An extension to index decomposition analysis," Energy Economics, Elsevier, vol. 34(1), pages 171-176.
    10. Kahrl, Fredrich & Roland-Holst, David & Zilberman, David, 2013. "Past as Prologue? Understanding energy use in post-2002 China," Energy Economics, Elsevier, vol. 36(C), pages 759-771.
    11. Lo, Kevin, 2014. "A critical review of China's rapidly developing renewable energy and energy efficiency policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 508-516.
    12. Zha, Donglan & Zhou, Dequn & Ding, Ning, 2009. "The contribution degree of sub-sectors to structure effect and intensity effects on industry energy intensity in China from 1993 to 2003," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 895-902, May.
    13. Su, Bin & Ang, B.W., 2015. "Multiplicative decomposition of aggregate carbon intensity change using input–output analysis," Applied Energy, Elsevier, vol. 154(C), pages 13-20.
    14. Wu, Libo & Huo, Hong, 2014. "Energy efficiency achievements in China׳s industrial and transport sectors: How do they rate?," Energy Policy, Elsevier, vol. 73(C), pages 38-46.
    15. Ouyang, Xiaoling & Lin, Boqiang, 2015. "An analysis of the driving forces of energy-related carbon dioxide emissions in China’s industrial sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 838-849.
    16. Andrews-Speed, Philip, 2009. "China's ongoing energy efficiency drive: Origins, progress and prospects," Energy Policy, Elsevier, vol. 37(4), pages 1331-1344, April.
    17. Xu, Bin & Lin, Boqiang, 2015. "How industrialization and urbanization process impacts on CO2 emissions in China: Evidence from nonparametric additive regression models," Energy Economics, Elsevier, vol. 48(C), pages 188-202.
    18. Xu, Xianshuo & Zhao, Tao & Liu, Nan & Kang, Jidong, 2014. "Changes of energy-related GHG emissions in China: An empirical analysis from sectoral perspective," Applied Energy, Elsevier, vol. 132(C), pages 298-307.
    19. Liu, Lan-Cui & Fan, Ying & Wu, Gang & Wei, Yi-Ming, 2007. "Using LMDI method to analyze the change of China's industrial CO2 emissions from final fuel use: An empirical analysis," Energy Policy, Elsevier, vol. 35(11), pages 5892-5900, November.
    20. Price, Lynn & Levine, Mark D. & Zhou, Nan & Fridley, David & Aden, Nathaniel & Lu, Hongyou & McNeil, Michael & Zheng, Nina & Qin, Yining & Yowargana, Ping, 2011. "Assessment of China's energy-saving and emission-reduction accomplishments and opportunities during the 11th Five Year Plan," Energy Policy, Elsevier, vol. 39(4), pages 2165-2178, April.
    21. Li, Li & Wang, Jianjun & Tan, Zhongfu & Ge, Xinquan & Zhang, Jian & Yun, Xiaozhe, 2014. "Policies for eliminating low-efficiency production capacities and improving energy efficiency of energy-intensive industries in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 312-326.
    22. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, April.
    23. Hasanbeigi, Ali & Price, Lynn & Fino-Chen, Cecilia & Lu, Hongyou & Ke, Jing, 2013. "Retrospective and prospective decomposition analysis of Chinese manufacturing energy use and policy implications," Energy Policy, Elsevier, vol. 63(C), pages 562-574.
    24. Liu, Zhu & Liang, Sai & Geng, Yong & Xue, Bing & Xi, Fengming & Pan, Ying & Zhang, Tianzhu & Fujita, Tsuyoshi, 2012. "Features, trajectories and driving forces for energy-related GHG emissions from Chinese mega cites: The case of Beijing, Tianjin, Shanghai and Chongqing," Energy, Elsevier, vol. 37(1), pages 245-254.
    25. Zhao, Yue & Ke, Jing & Ni, Chun Chun & McNeil, Michael & Khanna, Nina Zheng & Zhou, Nan & Fridley, David & Li, Qiqiang, 2014. "A comparative study of energy consumption and efficiency of Japanese and Chinese manufacturing industry," Energy Policy, Elsevier, vol. 70(C), pages 45-56.
    26. Zhao, Xiaoli & Ma, Chunbo & Hong, Dongyue, 2010. "Why did China's energy intensity increase during 1998-2006: Decomposition and policy analysis," Energy Policy, Elsevier, vol. 38(3), pages 1379-1388, March.
    27. He, Jiankun & Deng, Jing & Su, Mingshan, 2010. "CO2 emission from China's energy sector and strategy for its control," Energy, Elsevier, vol. 35(11), pages 4494-4498.
    28. Zhou, Nan & Levine, Mark D. & Price, Lynn, 2010. "Overview of current energy-efficiency policies in China," Energy Policy, Elsevier, vol. 38(11), pages 6439-6452, November.
    29. Yu, Yuqing & Wang, Xiao & Li, Huimin & Qi, Ye & Tamura, Kentaro, 2015. "Ex-post assessment of China's industrial energy efficiency policies during the 11th Five-Year Plan," Energy Policy, Elsevier, vol. 76(C), pages 132-145.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Nan & Ma, Zujun & Kang, Jidong & Su, Bin, 2019. "A multi-region multi-sector decomposition and attribution analysis of aggregate carbon intensity in China from 2000 to 2015," Energy Policy, Elsevier, vol. 129(C), pages 410-421.
    2. Wang, Juan & Hu, Mingming & Rodrigues, João F.D., 2018. "The evolution and driving forces of industrial aggregate energy intensity in China: An extended decomposition analysis," Applied Energy, Elsevier, vol. 228(C), pages 2195-2206.
    3. Liu, Nan & Ma, Zujun & Kang, Jidong, 2017. "A regional analysis of carbon intensities of electricity generation in China," Energy Economics, Elsevier, vol. 67(C), pages 268-277.
    4. Xu, Xianshuo & Zhao, Tao & Liu, Nan & Kang, Jidong, 2014. "Changes of energy-related GHG emissions in China: An empirical analysis from sectoral perspective," Applied Energy, Elsevier, vol. 132(C), pages 298-307.
    5. Jiang, Jingjing & Ye, Bin & Xie, Dejun & Li, Ji & Miao, Lixin & Yang, Peng, 2017. "Sector decomposition of China’s national economic carbon emissions and its policy implication for national ETS development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 855-867.
    6. Juan Wang & Tao Zhao & Xianshuo Xu & Xiaohu Zhang, 2016. "Exploring the changes of energy-related carbon intensity in China: an extended Divisia index decomposition," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(1), pages 501-521, August.
    7. Juan Wang & Tao Zhao & Xiaohu Zhang, 2017. "Changes in carbon intensity of China’s energy-intensive industries: a combined decomposition and attribution analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(3), pages 1655-1675, September.
    8. Jie-fang Dong & Qiang Wang & Chun Deng & Xing-min Wang & Xiao-lei Zhang, 2016. "How to Move China toward a Green-Energy Economy: From a Sector Perspective," Sustainability, MDPI, vol. 8(4), pages 1-18, April.
    9. Xianrui Liao & Wei Yang & Yichen Wang & Junnian Song, 2019. "Uncovering Variations, Determinants, and Disparities of Multisector-Level Final Energy Use of Industries Across Cities," Sustainability, MDPI, vol. 11(6), pages 1-16, March.
    10. Zhang, Chi & Su, Bin & Zhou, Kaile & Sun, Yuan, 2020. "A multi-dimensional analysis on microeconomic factors of China's industrial energy intensity (2000–2017)," Energy Policy, Elsevier, vol. 147(C).
    11. Xinlin Zhang & Yuan Zhao & Qi Sun & Changjian Wang, 2017. "Decomposition and Attribution Analysis of Industrial Carbon Intensity Changes in Xinjiang, China," Sustainability, MDPI, vol. 9(3), pages 1-16, March.
    12. Fernández González, P. & Presno, M.J. & Landajo, M., 2015. "Regional and sectoral attribution to percentage changes in the European Divisia carbonization index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1437-1452.
    13. Wang, Qunwei & Wang, Yizhong & Zhou, P. & Wei, Hongye, 2017. "Whole process decomposition of energy-related SO2 in Jiangsu Province, China," Applied Energy, Elsevier, vol. 194(C), pages 679-687.
    14. Xiao, Hao & Sun, Ke-Juan & Bi, Hui-Min & Xue, Jin-Jun, 2019. "Changes in carbon intensity globally and in countries: Attribution and decomposition analysis," Applied Energy, Elsevier, vol. 235(C), pages 1492-1504.
    15. Zhang, Wei & Li, Ke & Zhou, Dequn & Zhang, Wenrui & Gao, Hui, 2016. "Decomposition of intensity of energy-related CO2 emission in Chinese provinces using the LMDI method," Energy Policy, Elsevier, vol. 92(C), pages 369-381.
    16. Wang, Miao & Feng, Chao, 2018. "Decomposing the change in energy consumption in China's nonferrous metal industry: An empirical analysis based on the LMDI method," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2652-2663.
    17. Xu, Bin & Lin, Boqiang, 2016. "Reducing CO2 emissions in China's manufacturing industry: Evidence from nonparametric additive regression models," Energy, Elsevier, vol. 101(C), pages 161-173.
    18. Li, Hao & Zhao, Yuhuan & Qiao, Xiaoyong & Liu, Ya & Cao, Ye & Li, Yue & Wang, Song & Zhang, Zhonghua & Zhang, Yongfeng & Weng, Jianfeng, 2017. "Identifying the driving forces of national and regional CO2 emissions in China: Based on temporal and spatial decomposition analysis models," Energy Economics, Elsevier, vol. 68(C), pages 522-538.
    19. Işıl Şirin SELÇUK, 2018. "Türkiye Sanayi Sektörü Enerji Verimliliği: Genişletilmiş Logaritmik Ortalama Divisia Endeks Ayrıştırma Yöntemi Uygulaması," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    20. Xu, X.Y. & Ang, B.W., 2013. "Index decomposition analysis applied to CO2 emission studies," Ecological Economics, Elsevier, vol. 93(C), pages 313-329.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:87:y:2015:i:c:p:28-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.