Economic Growth, Energy Use, and Greenhouse Gases Emission in Macao SAR, China

Abstract

A city’s economic structure and energy mix would change when the city is developed to accommodate more residents, visitors, and activities. This paper reviews Macao’s economic growth, energy use, and greenhouse gases (GHG) emission from 1985 to 2020. Specifically, Macao’s gross domestic product (GDP), energy use, and GHG emission have surged after the gaming industry was liberalized in 2002. The official data show that Macao’s GDP was MOP 11 billion in 1985, increased by four-fold to MOP 54 billion in 2000, and then surged rapidly to MOP 445 billion in 2019. Additionally, Macao’s total energy use increased from 8,840[Formula: see text]TJ in 1985 to 48,330[Formula: see text]TJ in 2019 while Macao’s GHG emission increased from 0.70[Formula: see text]Mt of CO2-equivalent in 1985 to 6.13[Formula: see text]Mt of CO2-equivalent in 2019. Macao’s GHG emission from all local sources per capita and GDP per capita exhibit an inverted U-shaped relationship, showing an environmental Kuznets curve. Due to the negative impact of COVID-19 pandemic, Macao’s GDP dropped by 56% to MOP 194 billion while its total energy use and GHG emission dropped by 33% and 17% to 32,198[Formula: see text]TJ and 5.06[Formula: see text]Mt of CO2-equivalent, respectively, in 2020.