Socioeconomic determinants of China's growing CH

Reducing CH4 emissions is a major global challenge, owing to the world-wide rise in emissions and concentration of CH4 in the atmosphere, especially in the past decade. China has been the greatest contributor to global anthropogenic CH4 emissions for a long time, but current understanding towards its growing emissions is insufficient. This paper aims to link China's CH4 emissions during 2005-2012 to their socioeconomic determinants by combining input-output models with structural decomposition analysis from both the consumption and income perspectives. Results show that changes in household consumption and income were the leading drivers of the CH4 growth in China, while changes in efficiency remained the strongest factor offsetting CH4 emissions. After 2007, with the global financial crisis and economic stimulus plans, embodied emissions from exports plunged but those from capital formation increased rapidly. The enabled emissions in employee compensation increased steadily over time, whereas emissions induced from firms' net surplus decreased gradually, reflecting the reform on income distribution. In addition, at the sectoral level, consumption and capital formation respectively were the greatest drivers of embodied CH4 emission changes from agriculture and manufacturing, while employee compensation largely determined the enabled emission changes across all industrial sectors. The growth of CH4 emissions in China was profoundly affected by the macroeconomic situation and the changes of economic structure. Examining economic drivers of anthropogenic CH4 emissions can help formulate comprehensive mitigation policies and actions associated with economic production, supply and consumption.