A Structure Decomposition Analysis of China’s Production-Source CO<Subscript>2</Subscript> Emission: 1992–2002

This paper provides an empirical analysis of the relative impacts of various factors on CO<Subscript>2</Subscript> 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 CO<Subscript>2</Subscript> 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 CO<Subscript>2</Subscript> emission reduction, with construction and transport as two key industries to lower carbon emission. Copyright Springer Science+Business Media B.V. 2011