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Optimal economic restructuring to reduce carbon emissions intensity using the projected gradient algorithm


This paper proposes the projected gradient algorithm to find a solution that allows economic restructuring to minimize carbon emission intensity and not hinder targeted economic growth. It develops a general formula to calculate how much each sector should change its share in gross domestic products and its emission intensity such that the economy can have a lower aggregate emission intensity without hindering economic growth. Used data for 30 nations during 1997–2009, the study indicates that if a country follows this proposed optimal restructuring solution, it experiences a lower carbon emission intensity than its initial scenario. This solution is helpful to (1) find the optimal direction and quantitative solutions of a low emission economic structure; (2) continuously check and quantify the differences between the optimal and actual directions of economic structuring for adjusting economic and environmental policies.

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Correspondence to Hoang-Mai T. Bui.

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Le, C.Q., Bui, HM.T. Optimal economic restructuring to reduce carbon emissions intensity using the projected gradient algorithm. Environ Dev Sustain 24, 6271–6287 (2022).

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  • Carbon emission intensity
  • Economic growth
  • Optimal economic structuring
  • Projected gradient method

JEL Classification

  • C18
  • O13
  • O44