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Saving less in China facilitates global CO2 mitigation
Chen Lin1, Jianchuan Qi2, Sai Liang3
1School of Applied Economics, Renmin University of China, Beijing, 100872, P. R. China.
Nature Communications
|March 15, 2020
Summary
China's rising saving rates increased global CO2 emissions by 189 million tonnes. Reducing saving rates and promoting greener consumption can significantly cut industrial carbon dioxide (CO2) emissions worldwide.
Area of Science:
- Environmental Science
- Economics
- Climate Change
Background:
- China's economic transformation from investment-driven to consumption-driven growth impacts global CO2 emissions.
- Understanding the link between national saving rates and global carbon dioxide (CO2) emissions is crucial for climate change mitigation.
Purpose of the Study:
- To analyze the theoretical and empirical impacts of China's saving rate changes on global CO2 emissions.
- To quantify the potential reduction in global CO2 emissions through decreased saving rates and greener consumption in China.
Main Methods:
- Theoretical analysis of economic growth patterns and CO2 emissions.
- Empirical analysis of Chinese regional saving rates and global industrial CO2 emissions from 2007-2012.
Main Results:
- Increased saving rates in Chinese regions led to a 189 million tonnes (Mt) rise in global industrial CO2 emissions (2007-2012).
- A 15-percentage-point decrease in China's saving rate could reduce global CO2 emissions by 186 Mt (0.7%).
- Greener consumption in China offers a potential 14% reduction in global industrial CO2 emissions, with Shandong showing the most significant potential.
Conclusions:
- Shifting China's economic model towards consumption can substantially mitigate global CO2 emissions.
- Reducing economic frictions to align production with increased consumption is key for global CO2 mitigation efforts.
- Policy interventions targeting saving rates and consumption patterns in China are vital for addressing global carbon dioxide emissions.
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