A Structure Decomposition Analysis of China’s Production-Source CO2 Emission: 1992–2002

This paper provides an empirical analysis of the relative impacts of various factors on CO2 emissions from production of goods and services in China during two consecutive periods of 1992–1997 and 1997–2002. Results show that, on the positive side, level of final demand for goods and services was the main reason for the increase of production-source CO2 emission, while structure of net export has similar positive effect during the first period of 1992–1997. On the negative side, technology factors remains as the main factors reducing emissions. The level of net export played some role in the first period, but the effects were seen in the second period from energy intensity, fuel mix and input mix. The results suggest that economic structure be focused as an important factor for CO2 emission reduction, with construction and transport as two key industries to lower carbon emission.