Three-dimensional decomposition models for carbon productivity

This paper presents decomposition models for the change in carbon productivity, which is considered a key indicator that reflects the contributions to the control of greenhouse gases. Carbon productivity differential was used to indicate the beginning of decomposition. After integrating the differential equation and designing the Log Mean Divisia Index equations, a three-dimensional absolute decomposition model for carbon productivity was derived. Using this model, the absolute change of carbon productivity was decomposed into a summation of the absolute quantitative influences of each industrial sector, for each influence factor (technological innovation and industrial structure adjustment) in each year. Furthermore, the relative decomposition model was built using a similar process. Finally, these models were applied to demonstrate the decomposition process in China. The decomposition results reveal several important conclusions: (a) technological innovation plays a far more important role than industrial structure adjustment; (b) industry and export trade exhibit great influence; (c) assigning the responsibility for CO2 emission control to local governments, optimizing the structure of exports, and eliminating backward industrial capacity are highly essential to further increase China's carbon productivity.