The implications of China’s investment-driven economy on its energy consumption and carbon emissions

摘要

China's economy and its growth are typically considered investment-driven,due to the large contribution of its domestic investment-induced capital formation.However,the effects of China's investment-driven economy on its energy consumption and carbon emissions are still ambiguous and existing researches on this issue are limited.In this paper we aim to fill the research gap by analyzing the relationship between China's domestic investment and energy consumption,as well as related carbon emissions,using both qualitative and quantitative methods.First,we use an expenditure-approach-based framework to qualitatively examine the effects of China's domestic investment on its energy consumption.Also based on this framework,we define and differentiate the investment-driven energy consumption and carbon emissions from that which is driven by other economic activities.Second,we establish an energy input-output model to quantify China's investment-driven energy consumption and carbon emissions in terms of volume,share of total and distribution by sector.The results reveal that in 2007,China's domestic investment contributed one third of both its total national energy consumption and carbon emissions.Further results show that in the same year,a majority of this investment-driven energy consumption and carbon emissions,namely nine tenths of the total,is attributable to the construction and manufacturing sectors.Finally,given our results,we use the construction sector as a case to discuss how to determine the energy-saving,as well as emission-reduction potential of improving investment-driven energy consumption practices.The key findings of this study improve the understanding of how China's domestic investment affects its energy consumption and the associated carbon emissions.