The Impact of Industrial Added Value on Energy Consumption and Carbon Dioxide Emissions: A Case Study of China

Abstract

China, as the world’s largest energy consumer, is faced with the growing pressure of carbon emission reduction. Promoting the sustainable transformation of the economy and society has become a major concern for all sectors of society. This paper assesses the potential impacts of industrial added value on energy consumption and carbon dioxide (CO2) emissions from 2010 to 2020 in China using a multi-objective, linear programming model. The results show that when the industrial energy consumption is 3695.17 Mtce and the industrial CO2 emission is 9364.16 Mt, the goal of energy saving and emission reduction can be achieved. This corresponds to an annual average growth rate limit of industrial added value of 7.8%. In addition, we find that when the annual average growth rate of industrial added value is greater than 9.9%, changes in the annual average growth rate of industrial added value have no impact on economic development. However, industrial energy consumption intensity and industrial carbon emission intensity decrease with the increase in the annual average growth rate of sub-sectors. This study proposes that energy conservation, emission reduction, and a realization of the sustainable transformation of industry scheme need to be achieved by the Chinese government in order to to continue to promote the development of several sectors with low industrial energy consumption intensity and low industrial carbon emission intensity through policy implications.