Energy, Environment and Economic Transformation in China  book cover
1st Edition

Energy, Environment and Economic Transformation in China

ISBN 9781138910355
Published February 27, 2015 by Routledge
264 Pages 44 B/W Illustrations

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Book Description

China has achieved rapid economic growth since the market-oriented reform in 1978 and became the second largest economy in the world in 2010. However, the growth model in China is still extensive in nature and may be characterized with high energy consumption and heavy environmental pollutions etc. In fact, China has successively become the largest carbon emitter since 2007 and the largest energy consumer since 2009 in the world. This book endeavors to analyze whether such energy driven and environment restricted economic growth can be sustainable in China in the long run.

The book describes the basic situations of energy consumption and environmental pollution in China from the dimensions of industries, regions and energy-types. It also introduces the evolution of energy and environmental policies implemented in China. In particular, this book makes use of the environmental activity analysis model to assess the sustainable transformation of economic model in Chinese industries and regions. This model captures the negative externalities of pollutants and estimates the environmental total factor productivity accurately. The possibilities of win-win development and double dividend are also forecasted.

This book proposes new methods to measure the environmental total factor productivity, evaluate the process of low carbon transformation, quantify the structural bonus, estimate the abating cost and forecast the win-win development and so on. Researchers may find these methodologies useful for measuring other pollutants and for analysis in other countries.

Table of Contents

1. Introduction  2. Industrial and Regional Composition of Energy-induced CO2 Emission  3. How to Reduce Industrial CO2 Emission Intensity?  4. Measure of CO2 Shadow Price  5. Energy and Environmental Policies and Factors Driven Industrial Growth  6. Structural Change, Factors Reallocation and Industrial Growth  7. Undesirable Output, Environmental TFP and Industrial Economic Transformation  8. Evaluation on Regional Low-carbon Economic Transformation: Multiple Emissions  9. Energy-saving and Emission-abating Regulations and Win-win Development Simulations  10. Double Dividend Forecasting and Environmental Taxation Reform: Carbon Tax Case  11. Conclusions

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Shiyi Chen is Professor of Economics at Fudan University and a visiting scholar at Humbolt University zu Berlin, Germany. He is currently working as a research fellow at China Center for Economic Studies, Fudan Development Institute and Fudan Tyndall Centre, and director of Shanghai-Hong Kong Development Institute. He holds a PhD in Econometrics at Kyungpook National Univerity, Republic of Korea. His research interests are in econometrics, energy/environment/development economics, international finance and public economics. He has published in English journals such as Quantitative Finance, Journal of Forecasting, China Economic Review and top Chinese journals.


Shiyi Chen’s book provides a robust economic analysis of the status of China’s low-carbon energy transition. Focusing on China’s industrial sectors, Chen compiles extensive provincial level data on energy and environmental indicators. Chen points to the need to reform the energy pricing system and the environmental taxation system in China to achieve real economic transformation, as well as a need for developing a new indicator to evaluate economic transformation other than traditional GDP metrics. The findings of Chen’s study will be of great value for readers hoping to better understand the drivers of China’s carbon emissions, and for policymakers looking to assess how past economic and environmental targets in China have translated into emission reductions.’ — Joanna Lewis, Associate Professor of Science, Technology and International Affairs, Georgetown University