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Measurement of China’s green GDP and its dynamic variation based on industrial perspective

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Abstract

Over the previous two decades, Chinese economic development presented a rapid growth. However, with continuous industrialization and urbanization, China is confronted with great challenges of energy security and environmental issues. These problems are closely related to the current accounting method of economic growth to a certain extent. In order to meet these challenges, it is imperative to establish a green accounting system of economic growth and measure China’s green GDP and its changing trend based on the industrial perspective. Using the System of Environmental Economic Accounting (SEEA) and industry data, this paper estimates China’s green GDP and green value added by industry sectors in 2005, 2007, 2010, 2012, 2015, and 2017. The results reveal the following: First, the ratio of green GDP to traditional GDP gradually increases from 89.85 to 95.83% during 2005–2017, which means that the negative externalities of economic growth of the resource and environment are gradually weakened. Second, the difference between traditional GDP and green GDP during 2005–2017 is about 6.96%, with the carbon emissions accounting for 70.71% of environmental impact. Third, due to more than 80% of the environmental impact coming from three sectors: manufacturing (49.99%), electricity industry (22.63%), and other services (11.37%), these three sectors should be key sectors for energy conservation and emission reduction; fourth, the green GDP of the mining, electricity industries, and manufacturing accounts for the lowest proportion of GDP, which means that the development patterns of these three industries in recent years should be adjusted and optimized step by step.

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Funding

This study was funded by the National Natural Science Foundation of China (grant number: 71673217).

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Authors and Affiliations

  1. School of Economics and Finance, Xi’an Jiaotong University, Xi’an, 710061, China

    Feng Wang & Ruiqi Wang

  2. Xi’an Qujiang Culture Finance Holding Co. Ltd., Xi’an, 710061, China

    Junyao Wang

Authors
  1. Feng Wang
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  2. Ruiqi Wang
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  3. Junyao Wang
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Correspondence to Ruiqi Wang.

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Responsible editor: Eyup Dogan

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Appendix

Appendix

Table 11 Classification of industry sectors
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Wang, F., Wang, R. & Wang, J. Measurement of China’s green GDP and its dynamic variation based on industrial perspective. Environ Sci Pollut Res 27, 43813–43828 (2020). https://doi.org/10.1007/s11356-020-10236-x

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