The Abatement of Carbon Dioxide Intensity in China: Factors Decomposition and Policy Implications

To deal with the challenges brought about by climate changes, China decided to reduce the carbon dioxide (CO 2 ) intensity by 40–45 per cent from 2005 to 2020. Using the decomposition technique, this study finds that energy intensity is the most important force to drive the decline of CO 2 intensity between 1980 and 2008, followed by structural factors such as the adjustment of energy and industrial structure. Therefore, any environmental policy to promote energy efficiency will play the biggest role in achieving the target of abating CO 2 intensity in 2020.