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CO2 Emissions and Economic Growth in Western China: An Empirical Analysis Based on Panel Data for Western Provinces

October 2012
573-574:690-695

DOI:10.4028/www.scientific.net/AMR.573-574.690

Authors:

This paper examines the factors that affect carbon emissions based on the panel data for 9 western provinces in China over the period 1990–2009. Our empirical results show that the output size, industrial structure and energy consumption structure are the main factors affecting carbon emissions, and the income level has a negative effect to carbon emissions. Some policy implications of the empirical results have ﬁnally been proposed

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Emissions and Economic Growth in Western China:

An empirical analysis based on panel data for western provinces

Jinrong Jiang

1,a

, Shaowei Chen

, and Peiyu Ren

1School of Business, SiChuan University, Chengdu, 610065, China

2 School of Economics, SiChuan University, Chengdu, 610065, China

a181969217@qq.com

Keywords: Carbon emissions; Panel data model; Western China

Abstract. This paper examines the factors that affect carbon emissions based on the panel data for

9 western provinces in China over the period 1990–2009. Our empirical results show that the output

size, industrial structure and energy consumption structure are the main factors affecting carbon

emissions, and the income level has a negative effect to carbon emissions. Some policy implications

of the empirical results have ﬁnally been proposed.

Introduction

Global warming and the likely catastrophic effect of climate change has been the major issues that

the international community faced with. December 11, 2011, the 17th Conference of Parties

(COP17) to the United Nations Framework Convention of Climate Change (UNFCCC) agreed on

the second commitment period under the 1997 Kyoto Protocol after hard negotiations. As an

indispensable member of international climate negotiation countries, China has played an active

and constructive role.

China is the world's largest greenhouse gas emissions country. With rapid industrialization and

urbanization, China's energy demand is growing, and the corresponding greenhouse gas emissions

are also growing over time. Energy conservation is a long-term task, and is a very difficult task.

Currently, China has already issued a lot of energy saving policies and made great efforts on it.

With further deepening of the western development strategy, the western region’s economic

development of China has gradually become a new growth point. Research of what affects the

carbon emissions in the western region is of great practical significance for economic development

and carbon emissions reduction.

Literature Review

Foreign scholars carry out the most is the relationship among carbon emissions, economic growth,

income levels, demographic change and other aspects. Studies have shown that there is a strong

correlationship between carbon emissions and economic growth.

Kraft and Kraft (1978)

[1]

were the ﬁrst paying close attention to the relationship between economic

growth and energy consumption.

Douglas Holtz-Eakin and Thomas M. Selden (1995)

[2]

used panel data analysis to do empirical

analysis on the relationship between carbon emissions and GDP. They found that as economies

develops, there was a diminishing marginal propensity to emit CO

. They certificated that the

overall pace of economic development does not dramatically alter the future annual or cumulative

flow of CO

emissions by sensitivity analyses.

Advanced Materials Research Online: 2012-10-08

ISSN: 1662-8985, Vols. 573-574, pp 690-695

doi:10.4028/www.scientific.net/AMR.573-574.690

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CO2 Emissions and Economic Growth in Western China: An Empirical Analysis Based on Panel Data for Western Provinces

Abstract

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