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CO2-emission reduction in China’s residential building sector and contribution to the national climate change mitigation targets in 2020

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Abstract

Between 1980 and 2007, in the Chinese building sector in urban and rural areas, coal was mainly substituted with electricity and natural gas. Growing income will further increase energy consumption and CO2-emissions in the building sector. Using an econometric model, disaggregated energy demand and related CO2-emissions in the residential sector as well for the whole economy are estimated and forecasted until 2050. In 2009, the Chinese government pledged itself to reduce CO2-intensity by 40%–45% in 2020 compared to 2005. Aim of this article is to assess to which extent the measures in the building sector in China can contribute to this target. Main results of the analysis are: (a) The primary energy source coal was mainly substituted by electricity generated with coal. Apart from convenience gains, the environmental advantages are questionable. (b) Between 2010 and 2050, energy demand in the building sector will grow by 2.0%–4.1% per annum leading to CO2-emissions at least almost tripling from about 560 mill. tons in 2010 to about 1,500 mill. tons in 2050. (c) The energy efficiency gains in the building sector and other sectors of the Chinese economy, however, are not enough to fulfill the national CO2-intensity targets. The reduction of the CO2-intensity of GDP would be 37.2% in the BAU-scenario, and 31.9% in the LOW-scenario. Only in the HIGH-scenario (46.3%), the economy is growing efficient enough relative to the induced CO2-emissions. The remaining CO2-emission reductions could be gained by additional promotion of renewable energies (mainly solar and geo-thermal) in the building sector.

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Notes

  1. We thus use unit root tests, introduced by Dickey and Fuller (1979), in order to examine whether or not the time series of GDP per capita, primary energy consumption, heating degree days, as well as CO2emissions behave like random walks. Our augmented DICKEY-FULLER (ADF) test results indicate that the unit-root or random-walk hypotheses can be safely rejected merely for heating degree days. While the unit-root hypotheses cannot be rejected for energy consumption and CO2 emissions, their first differences appear to be stationary. In other words, these variables are integrated of order one. Only the first differences of GDP per capita may follow a random walk. Applying an ADF-test to the time series of the OLS-residuals indicates stationarity of the error terms. That means, the OLS estimations do not lead to spurious results such as the linear combination of the variables as given in energy consumption models (1–6) which appear to be co-integrated.

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Acknowledgements

This article is based on a paper presented on the ICAS Conference (panel: Is China’s climate policy at home better than it is appearing in international negotiations?) in Honolulu on 1 April 2011.

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Authors and Affiliations

  1. Research Center for International Environmental Policy (RCIEP), School of Environment, Tsinghua University, Sino-Italian Energy Efficiency Building, Room 1004, Haidian District, 100084, Beijing, China

    Andreas Oberheitmann

  2. Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Essen, Germany

    Andreas Oberheitmann

  3. Jiangnan University, Wuxi, China

    Andreas Oberheitmann

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  1. Andreas Oberheitmann
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Correspondence to Andreas Oberheitmann.

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Oberheitmann, A. CO2-emission reduction in China’s residential building sector and contribution to the national climate change mitigation targets in 2020. Mitig Adapt Strateg Glob Change 17, 769–791 (2012). https://doi.org/10.1007/s11027-011-9343-5

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  • DOI: https://doi.org/10.1007/s11027-011-9343-5

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