Decomposition Analysis of the Factors that Influence Energy Related Air Pollutant Emission Changes in China Using the SDA Method

We decompose factors affecting China's energy-related air pollutant (NOx, PM2.5, and SO2) emission changes into different effects using structural decomposition analysis (SDA). We find that, from 2005 to 2012, investment increased NOx, PM2.5, and SO2 emissions by 14.04, 7.82 and 15.59 Mt respectively, and consumption increased these emissions by 11.09, 7.98, and 12.09 Mt respectively. Export and import slightly increased the emissions on the whole, but the rate of the increase has slowed down, possibly reflecting the shift in China's foreign trade structure. Energy intensity largely reduced NOx, PM2.5, and SO2 emissions by 12.49, 14.33 and 23.06 Mt respectively, followed by emission efficiency that reduces these emissions by 4.57, 9.08, and 17.25 Mt respectively. Input-output efficiency slightly reduces the emissions. At sectoral and sub-sectoral levels, consumption is a great driving factor in agriculture and commerce, whereas investment is a great driving factor in transport, construction, and some industrial subsectors such as iron and steel, nonferrous metals, building materials, coking, and power and heating supply. Energy intensity increases emissions in transport, chemical products and manufacturing, but decreases emissions in all other sectors and subsectors. Some policies arising from our study results are discussed.