Journal
JOURNAL OF CLEANER PRODUCTION
Volume 227, Issue -, Pages 942-949Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.jclepro.2019.04.170
Keywords
Sulphur dioxide emissions; Energy efficiency; Stochastic frontier analysis; Error-correction model
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Funding
- Research Grants Council of the Hong Kong Special Administrative Region, China [21603917]
- Department of Science and Technology of Sichuan Province [2019JDR0269]
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This paper estimates the linkages among total Sulphur dioxide (SO2) emissions, total GDP and energy efficiency using China's provincial panel data from 2002 to 2015. We investigate total emissions rather than per capita emissions or ambient concentrations since it is total emissions that the environment cares about. Energy efficiency is estimated using stochastic frontier analysis and decomposed into both persistent and transient efficiency. We then investigate the long-run dynamics among SO2 emissions, economic growth, and energy efficiency by employing the panel-based error correction model and taking the effects of cyclical variations into account. Our analysis shows that GDP has a positive impact on total SO2 emissions in the short run and gains in energy efficiency have a significant negative effect on emissions in the long run. By controlling the effects of the business cycle, the effects of GDP on emissions remain positive in both the short and long run. The cross-sectional analysis provides similar insights. We argue that economic growth itself is an emission generator. Therefore, the government needs to establish a long-run strategy to curb emissions by improving energy efficiency. (C) 2019 Elsevier Ltd. All rights reserved.
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