Determinants of the increased CO2 emission and adaption strategy in Chinese energy-intensive industry

Climate change has not only brought about many natural hazards but also threaten the sustainable development of industry. This study is to investigate the adaptive implications for energy-intensive industries of China in response to climate change impacts. For this purpose, a deep and comprehensive analysis on the change of CO2 emission for 6 energy-intensive sectors is explored over the period of 2000-2007. A Log-Mean Divisia Index based on time series is also introduced in our study to identify the key factors toward the change of CO2 emission. It is shown that there were 146.1 million metric tons carbon increased in energy-intensive industries from 2000 to 2007. And the excessive growth of industrial output and increasingly fossil-intensive energy consumption structure were the main driving forces for the increased CO2 emission. Nevertheless, energy intensity change and declining emission coefficient of electricity played negative role in the growing trend of CO2 emission. On the basis of these four determinants (namely industrial output, energy intensity, fuel mix effect, and emission coefficient), it is suggested that both economic motives and technologically feasible approaches should be implemented to control the scale of excessive productions and improve energy efficiency toward the energy-intensive industries. And more importantly, strengthening energy-intensive sectors' awareness of climate change adaptation should be given stronger emphasis as long-term work with the help of some propaganda campaigns for instance.