Balancing Growth and Sustainability: a Regional Analysis of Industrial Carbon Efficiency in China

The urgent need to combat global warming and its profound consequences has become a paramount concern. As a major contributor to global carbon emissions, China has embarked on a path to enact stringent environmental regulations to combat climate change. A significant portion of China’s carbon emissions is attributed to its industrial sector, making the enhancement of energy efficiency in this domain imperative. This research delves into the concept of industrial carbon efficiency (ICEE) and aims to assess its state across China’s diverse provinces. Beyond a mere snapshot, it explores regional and temporal evolution patterns and identifies key variables shaping these dynamics. The study reveals significant regional disparities in ICEE, emphasizing the role of technical heterogeneity across the eight major economic regions. Polarization trends, particularly in developed coastal regions, pose challenges to achieving uniform carbon efficiency. These findings have vital theoretical implications, enhancing the understanding of industrial carbon efficiency in environmental economics. The research holds profound managerial and policy implications. Policymakers can utilize these insights to tailor strategies for enhancing energy efficiency in inland regions, prioritizing cleaner technologies, infrastructure development, and capacity building. The central role of coastal areas in achieving national carbon reduction objectives underscores the need for region-specific approaches. This study provides a comprehensive foundation for advancing sustainable industrial growth and effective carbon reduction in the context of climate change mitigation, highlighting the importance of international cooperation and knowledge-sharing among developed and developing regions.