Abstract

This paper estimates the macroeconomic costs of CO2 emission reduction in China employing the input-output analysis with the multi-objective programming approach. The results show that the effect of reducing CO2 emissions on China’s economy is significant. Under the present conditions, the estimated macroeconomic costs of CO2 emission reduction in 2010 for China are approximately 3, 100–4, 024 RMB t - 1 . The stronger the abatement actions, the higher the macroeconomic costs of per unit emission reduction would be. Excavation industry, oil industry, chemical industry, and metal smelting industry have high potential to abate their CO2 emissions. Fan, Y., X. Zhang, and L. Zhu, 2010: Estimating the macroeconomic costs of CO2 emission reduction in China based on multi-objective programming. Adv. Clim. Change Res., 1, doi: 10.3724/SP.J.1248.2010.00027.

Abstract

Global climate change mitigation and CO2 emission reduction have promoted the revolutionary transformation in energy system. The core content of energy system revolutionary transformation is to replace the high-carbon energy system dominated by fossil energy with low-carbon energy system dominated by new and renewable energy and finally realize the near-zero emission of CO2 . The new energy system transformation has also led to a reform in global economic and social development patterns. Developing low-carbon economy becomes the fundamental strategy of sustainable development under climate risk management and the only solution to getting on the road from industrial civilization to ecological civilization. China intends to achieve the peaking of CO2 emissions around 2030 and increase the share of non-fossil fuels in primary energy consumption to around 20% by 2030. Guided by the targets, China directs its economy development to a low-carbon pattern. Therefore, new and renewable power capacity need to reach 1300 GW, and the electricity generated should be 4 times of that in 2013 with a continuous increase rate of 6%–8% around 2030. The pace of energy substitution need to be accelerated and efficient, safe, clean, and low-carbon energy supply and consumption systems should be established besides strengthened energy conservation and improved energy efficient. Therefore, reform need be deepened, favorable policy system and market mechanism for energy revolution and low-carbon development need be established, energy pricing mechanism should be reformed, and national carbon market should be formed to provide a favorable policy and market environment for low-carbon technology innovation and industry development.

Abstract

The Paris Agreement establishes a new mechanism for post-2020 global climate governance, and sets long-term goals for global response to climate change, which will accelerate worldwide low-carbon transformation of economic development pattern, promote the revolutionary reform of energy system, boost a fundamental change in the mode of social production and consumption, and further the civilization of human society from industrial civilization to eco-civilization. The urgency of global low-carbon transition will reshape the competition situation of worlds economy, trade and technology. Taking the construction of eco-civilization as a guide, China explores green and low-carbon development paths, establishes ambitious intended nationally determined contribution (INDC) targets and action plans, advances energy production and consumption revolution, and speeds up the transformation of economic development pattern. These strategies and actions not only confirm to the trend of the world low-carbon transition, but also meet the intrinsic requirements for easing the domestic resources and environment constraints and realizing sustainable development. They are multi-win-win strategies for promotion of economic development and environmental protection and mitigation of carbon emissions. China should take the global long-term emission reduction targets as a guide, and formulate medium and long-term low-carbon development strategy, build the core competitiveness of low-carbon advanced technology and development pattern, and take an in-depth part in global governance so as to reflect the responsibility of China as a great power in constructing a community of common destiny for all mankind and addressing global ecological crisis.