Is China’s Target of a 40-45% Reduction in Carbon Dioxide Emissions Plausible?

Bosupeng, Mpho (2016): Is China’s Target of a 40-45% Reduction in Carbon Dioxide Emissions Plausible? Forthcoming in: Environmental & Socio-economic Studies , Vol. 5, No. 1 (31 March 2017)

Abstract

In the early days of industrialisation, economists believed that the ramifications of economic growth will far outweigh the potential damage to the environment. Today the concern is the rising magnitude of emissions. Many economies are under immense pressure to reduce carbon dioxide emissions. Carbon taxation and absorption technologies seem to be the main mechanisms controlling emissions in different nations. China proposed her target of reducing carbon dioxide emissions by 40-45% by 2025. The purpose of this study is to determine if China’s ambition of reducing its carbon dioxide emissions is feasible. This investigation also examines the potential effects of China's emissions on the economic growth of other countries. The study demonstrates that China’s target may not only reduce her output, but may also adversely affect the economic growth of others. This article further reveals that unemployment in China is likely to soar during the reduction in emissions and energy consumption. Additionally, this paper evaluates the effects of green taxation on carbon dioxide emissions. In conclusion, there is a possibility that China may reach her emissions target by 2025. However, the country faces a dilemma between economic growth and environmental preservation. It is recommended that China should explore techniques which will reduce emissions but not impinge negatively on economic growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: carbon dioxide emissions; economic growth; green taxation; energy consumption.
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q55 - Technological Innovation

References

Achmad D., Hamzani U. 2015. The role of regional superior sectors in creating GDP value added, employment opportunity, regional productivity and human development index. Procedia Social and Behavioral Sciences, 211: 953-959.

Alshehry A.S., Belloumi M. 2015. Energy consumption, carbon dioxide emissions and economic growth: the case of Saudi Arabia. Renewable and Sustainable Energy Reviews, 41: 237-247.

Deng W., Chen D.C, Huang M, Hu J., Chen L. 2015. Carbon dioxide deliming in leather production: a literature review. Journal of Cleaner Production, 87: 26-38.

Divya K.H., Devi V.R. 2014. A study on predictors of GDP: early signs. Procedia Economics and Finance, 11: 375-382.

Glaeser E.L., Kahn, M.E. 2008. The greenness of cities: carbon dioxide emissions and urban development. NBER, W/P No. 14238, 1-45.

Jafari Y., Othman J., Nor Abu H.S.M. 2012. Energy consumption, economic growth and environmental pollutants in Indonesia. Journal of Policy Modeling, 34: 879-889.

Li F., Dong S., Li X., Liang Q., Yang W. 2011. Energy consumption-economic growth relationship and carbon dioxide emissions in China. Energy Policy, 39: 568-574.

Loganathan N., Shabaz M., Taha R. 2014. The link between green taxation and economic growth on CO2 emissions: fresh evidence from Malaysia. Renewable and Sustainable Energy Review, 38: 1083-1091.

Omri A. 2013. CO2 emissions, energy consumption and economic growth in MENA countries: evidence from simultaneous equation models. Energy Economics, 40: 657-664.

Schafer A., Victor D.G. 1999. Global passenger travel: implications for carbon dioxide emissions. Energy, 24: 657-679.

Schmalensee R., Stoker T.M., Judson R.A. 1998. World carbon dioxide emissions: 1950-2050. Review of Economics and Statistics,15-27.

Soytas U., Sari R. 2009. Energy consumption, economic growth, and carbon emissions: challenges faced by an EU candidate member. Ecological Economics, 68: 1667-1675.

Xu B., Lin B. 2015. Carbon dioxide emissions reduction in China’s transport sector: a dynamic VAR (Vector Autoregression) approach. Energy, 83: 486-495.

Zhang X-P., Cheng X-M. 2009. Energy consumption, carbon emissions and economic growth in China. Ecological Economics, 68: 2706-2712.

Zhixin Z., Ya L. 2011. The impact of carbon dioxide on economic growth in China. Energy Procedia, 5: 1757-1761.