Exploring regional differences in the impact of high energy-intensive industries on CO2 emissions: Evidence from a panel analysis in China

Liu, Hanchu; Fan, Jie; Zhou, Gan; Wang, Qiang

Exploring regional differences in the impact of high energy-intensive industries on CO2 emissions: Evidence from a panel analysis in China

2019

Liu, Hanchu | Fan, Jie | Zhou, Gan | Wang, Qiang

China is currently the largest CO₂ emitter in the world. Within China, more than 60% of CO₂ emissions originate from high energy-intensive (HEI) industries. Therefore, controlling and reducing CO₂ emissions from HEI industries is crucial if China is to achieve its 2030 emission reduction targets. This study aims to investigate regional differences in the impact of HEI industries on CO₂ emissions in China. This paper presents an analysis of the impact of HEI industries on CO₂ emissions at the national and regional levels using a modified STIRPAT model and provincial panel data from 2000 to 2015 in China. The results show that HEI industries are significant contributors to China’s CO₂ emissions owing to the growth in industries, coal-based energy structure, low level of technology, and outstanding conduction effects. The impact intensity of HEI industries on CO₂ emissions decreases from the western to the central and eastern regions in China because of a huge regional difference in industrial structure, energy structure, R&D investment, and industrial transfer. Our findings have important implications for policymakers in China by indicating that regional policies concerning HEI industries should be differentiated to successfully reduce CO₂ emissions and meet national targets.

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