Open Access Letter

The Driving Force of CO2 Reduction in China’s Industries

by Lu Liu 1,*  and  Chengzhao You 2
School of Economics, Jinan University, Guangzhou, China
College of Business and Economics, Australian National University, Canberra, Australia
Author to whom correspondence should be addressed.
Received: 27 November 2022 / Accepted: 20 December 2022 / Published: 27 December 2022


We employ the joint production decomposition model to conduct a full decomposition of CO2 emission among 36 industrial sectors in China from 1998 to 2011, under the framework of growth accounting. The results show that: (1) the average CO2 emission increases at an annual rate of 3.01%, and production technology progression is the main driving force, while the transformation toward clean production effectively curb the rapid growth of CO2 emissions; (2) the effect of technology changes on CO2 emission is larger during the "10th Five-Year Plan" compared with the "11th Five-Year Plan", which makes the annual growth rate of CO2 emission during the "11th Five-Year Plan" 1% lower than its counterpart; This study has important theoretical and practical significance for understanding the driving factors of CO2 emission and the corresponding emission reduction measures.

Copyright: © 2022 by Liu and You. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Liu, L.; You, C. The Driving Force of CO2 Reduction in China’s Industries. Financial Economics Letters, 2022, 1, 5.
AMA Style
Liu L, You C. The Driving Force of CO2 Reduction in China’s Industries. Financial Economics Letters; 2022, 1(1):5.
Chicago/Turabian Style
Liu, Lu; You, Chengzhao 2022. "The Driving Force of CO2 Reduction in China’s Industries" Financial Economics Letters 1, no.1: 5.
APA style
Liu, L., & You, C. (2022). The Driving Force of CO2 Reduction in China’s Industries. Financial Economics Letters, 1(1), 5.

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