A coupled structural decomposition analysis (SDA) and sensitivity analysis approach is developed to explore the drivers of China’s CO2 emission intensity at both general and sectoral levels and from both ex-post and ex-ante perspectives. Two steps are involved—structural decomposition and sensitivity analysis. First, the popular factor decomposition method, SDA, is implemented to identify which
... [Show full abstract] drivers “have” made the largest contribution to emission intensity changes. Second, an emerging ex-ante approach, sensitivity analysis, is introduced to answer how and to what extent such drivers “will” influence future emission intensity at a sectoral level. Based on China’s input-output tables for 1997–2012, the empirical study provides a hotspot map of China’s energy system. (1) Direct-emission coefficient and technology coefficient are observed as the top two overall drivers. (2) For the former, reducing direct-emission coefficient in an emission-intensity sector (e.g., electricity and heat sectors) by 1% will mitigate China’s total emission intensity by at least 0.05%. (3) For the latter, future emission intensity is super-sensitive to direct transactions in emission-intensity sectors (particularly the chemical industry with elasticities up to 0.82%).