Decoupling between Economic Growth and Carbon Emissions: Based on Four Major Regions in China

Abstract

This paper constructs a decoupling model for four major economic regions of China, based on the Tapio decoupling index method and VAR model for carbon emissions to compare and measure the impact of decoupling between carbon emissions and economic growth in China during 1997 to 2019. The results show that the degree of decoupling between economic growth and carbon emissions varies among different economic regions, and the decoupling status is better in all regions at the beginning of the 21st century. In general, the decoupling status in the eastern and western regions is more ideal than that in the central and northeastern regions. The impulse response and variance decomposition results show that renewable energy consumption could always reduce the growth of carbon emission intensity, and its effects are most significant in the western region. The above findings help to reveal the link between economic growth, renewable energy consumption and carbon emissions in China in recent years, and how to ensure a stable economic growth in China while increasing the share of clean energy consumption in each region to achieve carbon neutrality.