Multi-region and multi-sector comparisons and analysis of industrial carbon productivity in China

In the context of global warming, increasing carbon productivity is an important way to balance environmental goals with economic growth and development. In this study, we measure the provincial industrial carbon productivity (ICP) in China. Employing spatial production-theoretical decomposition analysis and data from the industrial sector in each province of China, we investigate the regional disparities in ICP and the driving factors at the provincial and sectoral levels. The results indicate that the ICP discrepancies across different regions are obvious: the eastern region had the highest ICP, followed by the northeastern, central, and western regions. The capital-energy substitution effect and CO2 emission performance were two principal contributors to increasing the regional disparities for most provinces. By contrast, the labor-energy substitution effect and energy consumption structure remained relatively backward and resulted in lower ICP than the average level in most provinces. Furthermore, 12 key industrial subsectors, including electricity generation sector, five energy-intensive manufacturing sectors and six nonenergy intensive manufacturing sectors, in 13 provinces (including Hebei, Liaoning, Heilongjiang, Anhui, and all the other western provinces) were identified as the main drivers of the lower than average ICP in these 13 provinces. For the12 industrial sectors in the 13 provinces, industrial structure, and CO2 emission performance were the main causes of their backward carbon productivity. Based on the findings of this study, several relevant suggestions for policymakers are provided. (C) 2020 Elsevier Ltd. All rights reserved.

Automated summary

The study investigated the regional disparities and driving factors of industrial carbon productivity in Chinese provinces. The results showed that the eastern region had the highest carbon productivity while the western region had the lowest. The capital-energy substitution effect and CO2 emission performance were identified as the main contributors to the regional differences.