Carbon dioxide emissions reduction efficiency and growth potential: case of China

Purpose - Understanding China's carbon dioxide (CO2) emission status is crucial for getting Carbon Neutrality status. The purpose of the paper is to calculate two possible scenarios forCO2emission distribution and calculated input-output flows ofCO2emissions for every 31 China provinces for 2012, 2015 and 2017 years. Design/methodology/approach - In this study using the input and output (IO) table's data for the selected years, the authors found the volume ofCO2emissions per one Yuan of revenue for the industry in 2012 and the coefficient of emission reduction compared to 2012. Findings - Results show that in the industries with a huge volume ofCO2emissions, such as “Mining and washing of coal”, the authors cannot observe the reduction processes for years. Industries where emissions are being reduced are “Processing of petroleum, coking, nuclear fuel”, “Production and distribution of electric power and heat power”, “Agriculture, Forestry, Animal Husbandry and Fishery”. For the “construction” industry the situation with emissions did not change. Originality/value - “Transport, storage, and postal services” and “Smelting and processing of metals” industries in China has the second place concerning emissions, but over the past period, emissions have been sufficiently reduced. “Construction” industry produces a lot of emissions, but this industry does not carry products characterized by large emissions from other industries. Authors can observe that Jiangsu produces a lot ofCO2emissions, but they do not take products characterized by significant emissions from other provinces. Shandong produces a lot of emissions and consumes many of products characterized by large emissions from other provinces. However, Shandong showed a reduction inCO2emissions from 2012 to 2017.