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Analysis of the Gravity Movement and Decoupling State of China’s CO 2 Emission Embodied in Fixed Capital Formation

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  • Xi Zhang

    (School of Environmental Science and Engineering, Shanghai Jiao Tong University, Shanghai 200240, China
    Department of Chemical and Biomolecular Engineering, National University of Singapore, Singapore 119077, Singapore)

  • Ziyan Gao

    (SJTU-UNIDO Joint Institute of Inclusive and Sustainable Industrial Development, School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200240, China)

  • Yong Geng

    (School of Environmental Science and Engineering, Shanghai Jiao Tong University, Shanghai 200240, China
    SJTU-UNIDO Joint Institute of Inclusive and Sustainable Industrial Development, School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200240, China
    China Institute for Urban Governance, Shanghai Jiao Tong University, Shanghai 200240, China)

  • Yen Wah Tong

    (Department of Chemical and Biomolecular Engineering, National University of Singapore, Singapore 119077, Singapore)

  • Harn Wei Kua

    (Department of Building, School of Design and Environment, National University of Singapore, Singapore 117566, Singapore)

  • Xiaoqian Song

    (SJTU-UNIDO Joint Institute of Inclusive and Sustainable Industrial Development, School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200240, China
    China Institute for Urban Governance, Shanghai Jiao Tong University, Shanghai 200240, China)

  • Yue Xu

    (School of Management and Economics, Beijing Institute of Technology, Beijing 100083, China
    Center for Japanese Studies, Shanghai Jiao Tong University, Shanghai 200240, China)

  • Fei Wu

    (Climate Policy Group, Institute for Environmental Decisions, ETH Zürich, 8006 Zürich, Switzerland)

Abstract

Investment is an essential engine of economic growth and a major source of China’s CO 2 emission. It is therefore crucial to explore the gravity movement and decoupling state of China’s CO 2 emission embodied in fixed capital formation (FCF). This study aims to estimate China’s CO 2 emissions embodied in various categories of FCF by using input–output tables. The gravity model and Shapley decomposition method are used to explore the gravity movement and regional contributions for China’s CO 2 emissions embodied in FCF. Then, the Tapio decoupling model and logarithmic mean Divisia index (LMDI) method are combined to uncover the decoupling relationship between CO 2 emissions and economic growth embodied in FCF and the corresponding driving factors. The results show that China’s CO 2 emissions embodied in FCF experienced a rapid increase during 2002–2012 and remained almost stable during 2012–2017. The gravity center for CO 2 emissions embodied in FCF moved toward northwest during 2002–2015, with the northwestern region and middle Yellow River region being the main engine regions. The relations between CO 2 emissions and added values embodied in various categories of FCF were weak decoupling during 2002–2017. Investment scale was the major factor inhibiting the decoupling, while embodied energy intensity was the major factor promoting the decoupling. Finally, several policy recommendations are proposed based on these findings.

Suggested Citation

  • Xi Zhang & Ziyan Gao & Yong Geng & Yen Wah Tong & Harn Wei Kua & Xiaoqian Song & Yue Xu & Fei Wu, 2020. "Analysis of the Gravity Movement and Decoupling State of China’s CO 2 Emission Embodied in Fixed Capital Formation," Energies, MDPI, vol. 13(24), pages 1-20, December.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:24:p:6655-:d:463567
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