The Decomposition and Dynamics of Industrial Carbon Dioxide Emissions for 287 Chinese Cities in 1998–2009

22 Pages Posted: 9 Jun 2016

See all articles by Max Auffhammer

Max Auffhammer

University of California, Berkeley - Department of Agricultural & Resource Economics

Weizeng Sun

Tsinghua University

Jianfeng Wu

Fudan University

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate; Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning; Hang Lung Center for Real Estate, Tsinghua University

Date Written: July 2016

Abstract

85% of China's GHG emissions are attributed to urban economic activities, and this share is expected to rise given China's fast urbanization process. This paper provides estimates of city‐level industrial CO emissions and their growth rates for all 287 Chinese prefecture‐level and above cities during the years 1998–2009. We decompose the CO emission changes into scale, composition and technique effects. The decomposition results show that these three effects differ significantly across the three tiers of cities in China. The scale effect contributes to rising CO emissions, while the technique effect leads to declining CO emissions in all cities. The composition effect leads to increasing CO emissions in the third‐tier cities, while it reduces CO emissions in the first and second‐tier cities, due to the relocation of energy‐intensive industries from the latter to the former type of cities. Based on these decomposition results, we identify the separate channels through which the inflow of FDI and the environmental regulations affect city‐level CO emissions. The decomposition framework in our paper can help policy makers and scholars to better understand Chinese cities’ trade‐offs between economic growth and environmental goals.

Keywords: Chinese cities, Decomposition, Industrial carbon dioxide

Suggested Citation

Auffhammer, Maximilian and Sun, Weizeng and Wu, Jianfeng and Zheng, Siqi, The Decomposition and Dynamics of Industrial Carbon Dioxide Emissions for 287 Chinese Cities in 1998–2009 (July 2016). Journal of Economic Surveys, Vol. 30, Issue 3, pp. 460-481, 2016, Available at SSRN: https://ssrn.com/abstract=2791819 or http://dx.doi.org/10.1111/joes.12158

Maximilian Auffhammer (Contact Author)

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

Berkeley, CA 94720
United States

Weizeng Sun

Tsinghua University ( email )

No Address Available

Jianfeng Wu

Fudan University

Siqi Zheng

Massachusetts Institute of Technology (MIT) - Center for Real Estate ( email )

Building 9-323
Cambridge, MA 02139
United States

HOME PAGE: http://https://siqizheng.mit.edu/

Massachusetts Institute of Technology (MIT) - Department of Urban Studies & Planning ( email )

77 Massachusetts Avenue
Cambridge, MA 02139
United States

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://https://siqizheng.mit.edu/

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