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Emission reduction target, complexity and industrial performance.

Zhaoyingzi Dong1, Wenqiang Chen2, Shaojian Wang3

  • 1School of Public Affairs, Zhejiang University, Zhejiang, China.

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|February 25, 2020
PubMed
Summary
This summary is machine-generated.

China's emission reduction targets negatively impact industrial performance, especially for less complex sectors. However, highly complex industries may see performance improvements, offering a path for sustainable economic growth.

Keywords:
11th five-year planChinaClimate changeComplexityIndustrial diversification“Emission reduction target” policy

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Area of Science:

  • Environmental Economics
  • Industrial Policy
  • Complexity Science

Background:

  • China implemented emission reduction targets during the 11th Five-year Plan to combat climate change.
  • These policies aimed to reduce energy consumption per unit of GDP by 20%.
  • Understanding the impact on industrial performance is crucial for effective policy design.

Purpose of the Study:

  • To estimate the effect of China's emission reduction target policy on industrial performance.
  • To analyze this impact through the lens of industrial structure complexity.
  • To identify conditions under which the policy can foster sustainable economic growth.

Main Methods:

  • Analysis of industrial structure complexity.
  • Estimation of the policy's effect on industry branching, productivity, and profitability.
  • Comparative analysis across industries with varying complexity levels.

Main Results:

  • A more complex industrial structure correlates with lower coal consumption.
  • The emission reduction policy generally reduces the likelihood of branching into new industries and lowers productivity and profitability.
  • These negative effects are less pronounced in more complex industries.

Conclusions:

  • Highly complex industries can experience performance improvements under the emission reduction policy.
  • The policy's impact is contingent on industrial complexity, suggesting tailored approaches.
  • Findings inform strategies for balancing industrial development with greenhouse gas emission reduction.