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Coupling of economic growth and reduction in carbon emissions at the efficiency level: Evidence from China

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  • Sheng, Pengfei
  • Li, Jun
  • Zhai, Mengxin
  • Huang, Shoujun

Abstract

Our work provides a comprehensive investigation of the coupling between the efficiency of economic growth and the efficiency of carbon emissions reduction in China, and makes a distinction between the coupling over the long-run and the short-run. Our estimates suggested significant evidence of coupling between economic growth and efficiency in carbon emissions reduction in the long-run, but China’s economic growth still increased carbon emissions at the aggregate level. In the short-run, coupling effects were different across provinces that were at different stages of economic development. Provinces with low- and high-stages of development saw positive short-run coupling, but provinces at the intermediate stage of development saw the contrary, which resulted in an obvious “U" shaped relationship between short-run coupling effects and real GDP per capita. Finally, our findings provide an economic rationale for differentiated low-carbon policies.

Suggested Citation

  • Sheng, Pengfei & Li, Jun & Zhai, Mengxin & Huang, Shoujun, 2020. "Coupling of economic growth and reduction in carbon emissions at the efficiency level: Evidence from China," Energy, Elsevier, vol. 213(C).
  • Handle: RePEc:eee:energy:v:213:y:2020:i:c:s0360544220318545
    DOI: 10.1016/j.energy.2020.118747
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