Abstract Based on the matching data of China Industrial Enterprise Database and China Customs Database from 2000 to 2015, this paper examines the influence of robot application (RA) on the export product scope (EPS) of multi-product enterprises (MPEs), the influence channels, and the export competition strategies of these enterprises. The research results show that RA has promoted the expansion of EPS of MPEs, and this promotion effect is prominent especially for the export of labor-intensive products, resource-intensive products and for non-state-owned enterprises (SOEs). The adjustment of EPS by RA not only enhances efficiency through productivity improvement effect and cost-saving effect, but also improves quality through emission-reduction effect and product quality effect, which is very obvious in long-quality-ladder enterprises. The RA-expanded product scope covers both old products and new products manufactured in the same industry. Facing fierce competition in the same industry, robot-using enterprises prefer quality competition strategy, which further promotes the expansion of EPS.
{"title":"Robot Application and Adjustment of Export Product Scope: Can We Have Both Efficiency and Quality?","authors":"Jianhong Qi, Zhitong Zhang","doi":"10.1515/cfer-2023-0004","DOIUrl":"https://doi.org/10.1515/cfer-2023-0004","url":null,"abstract":"Abstract Based on the matching data of China Industrial Enterprise Database and China Customs Database from 2000 to 2015, this paper examines the influence of robot application (RA) on the export product scope (EPS) of multi-product enterprises (MPEs), the influence channels, and the export competition strategies of these enterprises. The research results show that RA has promoted the expansion of EPS of MPEs, and this promotion effect is prominent especially for the export of labor-intensive products, resource-intensive products and for non-state-owned enterprises (SOEs). The adjustment of EPS by RA not only enhances efficiency through productivity improvement effect and cost-saving effect, but also improves quality through emission-reduction effect and product quality effect, which is very obvious in long-quality-ladder enterprises. The RA-expanded product scope covers both old products and new products manufactured in the same industry. Facing fierce competition in the same industry, robot-using enterprises prefer quality competition strategy, which further promotes the expansion of EPS.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"12 1","pages":"67 - 88"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44471235","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The blend of economic stagnation and inflation is a challenge to the contemporary macroeconomic study. The causes, influence and policy implications of “stagflation” have been academically controversial. This paper starts with the connections between energy crises and stagflation to research the causes of “stagflation” in the 1970s and analyze the realistic impact of energy crises. It then comparatively studies the current economic landscape and the landscape in the 1970s for similarities and differences, digs into the origin of the current macroeconomic situation, and on such basis proposes policy suggestions.
{"title":"The “Stagflation” Risk and Policy Control: Causes, Governance and Inspirations","authors":"Zhenxia Wang","doi":"10.1515/cfer-2023-0003","DOIUrl":"https://doi.org/10.1515/cfer-2023-0003","url":null,"abstract":"Abstract The blend of economic stagnation and inflation is a challenge to the contemporary macroeconomic study. The causes, influence and policy implications of “stagflation” have been academically controversial. This paper starts with the connections between energy crises and stagflation to research the causes of “stagflation” in the 1970s and analyze the realistic impact of energy crises. It then comparatively studies the current economic landscape and the landscape in the 1970s for similarities and differences, digs into the origin of the current macroeconomic situation, and on such basis proposes policy suggestions.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"12 1","pages":"48 - 66"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43514430","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper uses the follow-up survey data of six time points between 1978 and 2018 from 40 fixed observation points in Beijing suburbs by stratified sampling, and makes a long-term observation and analysis of the convergence of village collective economy (VCE). The main findings are as follows. (1) Since the start of reform and opening-up, the gap between villages in terms of total village economic income (TVEI) and total assets of village collectives has obviously widened, and the gap between villages in terms of the number of members of VCE organizations has also widened to a certain extent. (2) There is a big gap in VCE between villages in urban-rural fringe, plain and mountainous areas, and the convergence of “space club” appears. (3) In the early stage of reform and opening up, the VCE development had the opportunity to reshuffle, but from 1998 to 2018, village development showed a trend of “good-medium-poor” hierarchical solidification. Therefore, it is necessary to explore a new path of cross-village joint development, especially to develop and strengthen the township-level collective economy, so as to promote farmers’ common prosperity in rural areas.
{"title":"Convergence Analysis of Village Collective Economy Based on a Long-Term (1978–2018) Observation of 40 Villages in the Suburbs of Beijing","authors":"Xueyuan Chen, Yuqing Zhou, Ning Weng","doi":"10.1515/cfer-2023-0006","DOIUrl":"https://doi.org/10.1515/cfer-2023-0006","url":null,"abstract":"Abstract This paper uses the follow-up survey data of six time points between 1978 and 2018 from 40 fixed observation points in Beijing suburbs by stratified sampling, and makes a long-term observation and analysis of the convergence of village collective economy (VCE). The main findings are as follows. (1) Since the start of reform and opening-up, the gap between villages in terms of total village economic income (TVEI) and total assets of village collectives has obviously widened, and the gap between villages in terms of the number of members of VCE organizations has also widened to a certain extent. (2) There is a big gap in VCE between villages in urban-rural fringe, plain and mountainous areas, and the convergence of “space club” appears. (3) In the early stage of reform and opening up, the VCE development had the opportunity to reshuffle, but from 1998 to 2018, village development showed a trend of “good-medium-poor” hierarchical solidification. Therefore, it is necessary to explore a new path of cross-village joint development, especially to develop and strengthen the township-level collective economy, so as to promote farmers’ common prosperity in rural areas.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"12 1","pages":"100 - 129"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44556254","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The Renminbi (RMB) exchange rate regime reform has gone through three stages roughly once every decade since 1994. It is a structural evolution through the unification of dual exchange rates, increased fluctuations and central parity rate reform in response to the dynamic macro environment in China and abroad. This paper unpacks leading and supporting reforms for each stage and reviews the effects. The reform has developed historical experience in adopting progressive strategies, avoiding sharp exchange rate fluctuations in the near term, maintaining appropriate capital controls, and guaranteeing the reform through domestic structural reforms. Achieving a free-floating exchange rate will be the ultimate goal, but it will not be made easily in the short run. During the transitional period, it is recommended that an annual target zone for RMB’s effective exchange rate be arranged for the CFETS currency basket, along with necessary capital controls.
{"title":"Structural Evolution of RMB Exchange Rate Reform: Historical Review, Experience and Prospect","authors":"Ming Zhang, Yinmo Chen","doi":"10.1515/cfer-2023-0001","DOIUrl":"https://doi.org/10.1515/cfer-2023-0001","url":null,"abstract":"Abstract The Renminbi (RMB) exchange rate regime reform has gone through three stages roughly once every decade since 1994. It is a structural evolution through the unification of dual exchange rates, increased fluctuations and central parity rate reform in response to the dynamic macro environment in China and abroad. This paper unpacks leading and supporting reforms for each stage and reviews the effects. The reform has developed historical experience in adopting progressive strategies, avoiding sharp exchange rate fluctuations in the near term, maintaining appropriate capital controls, and guaranteeing the reform through domestic structural reforms. Achieving a free-floating exchange rate will be the ultimate goal, but it will not be made easily in the short run. During the transitional period, it is recommended that an annual target zone for RMB’s effective exchange rate be arranged for the CFETS currency basket, along with necessary capital controls.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"12 1","pages":"3 - 23"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47868144","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The optimization and upgrading of industrial structure is the driving force to build a new development pattern and improve the quality and efficiency of economic development. China’s “pressure-type” fiscal incentives (PTFIs) are an important perspective from which the law of industrial structure change can be analyzed. Based on the dynamic panel data of 285 cities in China and the behavioral characteristics of local governments, this paper explores the effects of PTFIs on industrial restructuring using the GMM estimation method. It is found that PTFIs are conducive to improving the “quantity” of industrial structure upgrading (ISU), but not conducive to improving the “quality” of ISU or the rationalization of industrial structure (RIS). Mechanism identification reveals that, with PTFIs, local governments influence industrial restructuring mainly by “expanding financial resources with land” (EFRWL) and increasing the intensity of tax collection and management (ITCM). Further discussion reveals that a higher degree of fiscal decentralization and environmental regulation can effectively alleviate the negative impact of PTFIs on industrial restructuring. Accordingly, this paper puts forward some policy recommendations to promote the balanced development of industrial structure, such as improving the institutional conditions and standardizing the behavior of local governments.
{"title":"The Effect of “Pressure-Type” Fiscal Incentives on Industrial Restructuring in China","authors":"Liying Song, An-lu Zhang","doi":"10.1515/cfer-2023-0005","DOIUrl":"https://doi.org/10.1515/cfer-2023-0005","url":null,"abstract":"Abstract The optimization and upgrading of industrial structure is the driving force to build a new development pattern and improve the quality and efficiency of economic development. China’s “pressure-type” fiscal incentives (PTFIs) are an important perspective from which the law of industrial structure change can be analyzed. Based on the dynamic panel data of 285 cities in China and the behavioral characteristics of local governments, this paper explores the effects of PTFIs on industrial restructuring using the GMM estimation method. It is found that PTFIs are conducive to improving the “quantity” of industrial structure upgrading (ISU), but not conducive to improving the “quality” of ISU or the rationalization of industrial structure (RIS). Mechanism identification reveals that, with PTFIs, local governments influence industrial restructuring mainly by “expanding financial resources with land” (EFRWL) and increasing the intensity of tax collection and management (ITCM). Further discussion reveals that a higher degree of fiscal decentralization and environmental regulation can effectively alleviate the negative impact of PTFIs on industrial restructuring. Accordingly, this paper puts forward some policy recommendations to promote the balanced development of industrial structure, such as improving the institutional conditions and standardizing the behavior of local governments.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"12 1","pages":"89 - 109"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41468905","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Domestic asset price fluctuations triggered by the impact of the Fed’s interest rate hike may lead to a spiral of mutual feedback between fluctuations in real economy and systematic risks of the financial sector. By constructing a DSGE model of small-scale open economy including cross-border capital flows and supply-demand financial frictions, this paper describes the negative feedback mechanism formed by the interplay between domestic real-economy fluctuations and financial risks on both supply and demand sides under the impact of Fed’s interest rate hike, and studies how to coordinate monetary policy and macroprudential policies under the goals of maintaining stable growth and preventing risks.
{"title":"A Study of Coordinating China’s Two-Pillar Regulatory Policy under the Shock of the Fed’s Interest Rate Hike—From the Perspective of “Stable Growth” and “Risk Prevention”","authors":"Yuhuan Yi, Min Pan","doi":"10.1515/cfer-2023-0002","DOIUrl":"https://doi.org/10.1515/cfer-2023-0002","url":null,"abstract":"Abstract Domestic asset price fluctuations triggered by the impact of the Fed’s interest rate hike may lead to a spiral of mutual feedback between fluctuations in real economy and systematic risks of the financial sector. By constructing a DSGE model of small-scale open economy including cross-border capital flows and supply-demand financial frictions, this paper describes the negative feedback mechanism formed by the interplay between domestic real-economy fluctuations and financial risks on both supply and demand sides under the impact of Fed’s interest rate hike, and studies how to coordinate monetary policy and macroprudential policies under the goals of maintaining stable growth and preventing risks.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"12 1","pages":"24 - 47"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42779469","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Pollution has become an unavoidable concern as China’s high-quality development is underway. How to reduce pollution is an imperative issue for China to address. Pollution emissions are closely related to factor inputs, production processes and pollution control measures. Are there other forces to cut emissions besides regulatory control? Taking sulfur dioxide as an example, this paper probes into the potential mechanism through which technical efficiency drives pollution reduction in the context of opening to foreign investment. The results reveal that the openness to foreign investment remarkably lowers pollution emissions of firms, with SOEs, large firms and exporters seeing more pronounced pollution reduction effect after opening to foreign investment, while firms in pollution-intensive industries and less regulated areas are weaker in pollution reduction. A look into firm behavior suggests that the openness to foreign investment reduces pollutant emissions by improving technical efficiency rather than by raising investment in pollution control. The pollution reduction effect resulting from the openness is reflected in the improvement of intra-firm emission reduction capacity instead of inter-firm resource reallocation effect, according to an analysis at the aggregate level. This paper concludes that technical efficiency gains are an important tool to advance pollution reduction, and that China must be more flexible in leveraging the pollution reduction effect of other policies regarding technical efficiency to drive its high-quality development that is green.
{"title":"Emission Reduction Investment, Technology Choice and Business Environmental Performance: Evidence from China’s Foreign Investment Liberalization Reform","authors":"Chaohua Han, Zhen Wang","doi":"10.1515/cfer-2022-0024","DOIUrl":"https://doi.org/10.1515/cfer-2022-0024","url":null,"abstract":"Abstract Pollution has become an unavoidable concern as China’s high-quality development is underway. How to reduce pollution is an imperative issue for China to address. Pollution emissions are closely related to factor inputs, production processes and pollution control measures. Are there other forces to cut emissions besides regulatory control? Taking sulfur dioxide as an example, this paper probes into the potential mechanism through which technical efficiency drives pollution reduction in the context of opening to foreign investment. The results reveal that the openness to foreign investment remarkably lowers pollution emissions of firms, with SOEs, large firms and exporters seeing more pronounced pollution reduction effect after opening to foreign investment, while firms in pollution-intensive industries and less regulated areas are weaker in pollution reduction. A look into firm behavior suggests that the openness to foreign investment reduces pollutant emissions by improving technical efficiency rather than by raising investment in pollution control. The pollution reduction effect resulting from the openness is reflected in the improvement of intra-firm emission reduction capacity instead of inter-firm resource reallocation effect, according to an analysis at the aggregate level. This paper concludes that technical efficiency gains are an important tool to advance pollution reduction, and that China must be more flexible in leveraging the pollution reduction effect of other policies regarding technical efficiency to drive its high-quality development that is green.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"89 - 109"},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47233334","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract At present, China is in the period of large-scale tax and fee cuts and external pandemic shocks. Local governments’ financial pressure has intensified. There is a lack of existing studies on how it will affect local carbon emissions. This paper uses the quasi-natural experiment of the 2010 educational authority reform to measure exogenous changes in financial pressure. It adopts the continuous double differential method to empirically investigate the impact of local financial pressure on carbon emissions. The results of the paper are as follows. First, the financial pressure generated by the educational authority reform has significantly increased local carbon emission intensity. This indicates that local governments will address carbon emissions in other ways when they feel financial pressure. Second, to ease financial pressure, local governments will regulate high energy-consuming enterprises and utilize their high production value and strong tax-generating ability to scale up their production capacity and obtain more tax revenues, which will lead to a large amount of carbon emissions. This study is of important reference significance for how to deal with financial pressure from now on and how to well handle the relationship between local finance and carbon emissions.
{"title":"Financial Pressure, Energy Consumption and Carbon Emissions: A Quasi-Natural Experiment Based on the Educational Authority Reform","authors":"Entao Ma, Xuan Yang","doi":"10.1515/cfer-2022-0022","DOIUrl":"https://doi.org/10.1515/cfer-2022-0022","url":null,"abstract":"Abstract At present, China is in the period of large-scale tax and fee cuts and external pandemic shocks. Local governments’ financial pressure has intensified. There is a lack of existing studies on how it will affect local carbon emissions. This paper uses the quasi-natural experiment of the 2010 educational authority reform to measure exogenous changes in financial pressure. It adopts the continuous double differential method to empirically investigate the impact of local financial pressure on carbon emissions. The results of the paper are as follows. First, the financial pressure generated by the educational authority reform has significantly increased local carbon emission intensity. This indicates that local governments will address carbon emissions in other ways when they feel financial pressure. Second, to ease financial pressure, local governments will regulate high energy-consuming enterprises and utilize their high production value and strong tax-generating ability to scale up their production capacity and obtain more tax revenues, which will lead to a large amount of carbon emissions. This study is of important reference significance for how to deal with financial pressure from now on and how to well handle the relationship between local finance and carbon emissions.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"44 - 65"},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43563687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract The allocation mechanism for carbon emissions permit(CEP) is an institutional guarantee for advancing the development of China’s unified carbon trading market. The initial allocation of carbon quotas fails to solve new inequalities stemming from subsidizing cleaner production. This paper constructs a theoretical framework that describes China’s progressive decline in carbon intensity, calculates the equilibrium solution on the neoclassical saddle point path using the shooting method, and studies the income distribution imbalance caused by cleaner production subsidies and the reallocation mechanism of carbon emissions permit The main conclusion is that the incremental cleaner production subsidy policy meets the goal of maximizing welfare on the saddle point path, but it may lead to over-investment in the clean sector, thus causing the income distribution imbalance among entities. Further research suggests that the amount of carbon emissions permit acquired by the clean sector should be higher than the actual emissions in the trading market and that, as the cleaner support increases, the share of carbon emissions permit acquired by the sector should be constantly increased through reallocation mechanism. This helps achieve the Pareto improvement in all parties’ economic benefits.
{"title":"Study on Cleaner Production Subsidies, Income Distribution Imbalance and Carbon Emissions Permit Reallocation Mechanism","authors":"Qingquan Fan, Jingran Liu, Jingda Wang","doi":"10.1515/cfer-2022-0023","DOIUrl":"https://doi.org/10.1515/cfer-2022-0023","url":null,"abstract":"Abstract The allocation mechanism for carbon emissions permit(CEP) is an institutional guarantee for advancing the development of China’s unified carbon trading market. The initial allocation of carbon quotas fails to solve new inequalities stemming from subsidizing cleaner production. This paper constructs a theoretical framework that describes China’s progressive decline in carbon intensity, calculates the equilibrium solution on the neoclassical saddle point path using the shooting method, and studies the income distribution imbalance caused by cleaner production subsidies and the reallocation mechanism of carbon emissions permit The main conclusion is that the incremental cleaner production subsidy policy meets the goal of maximizing welfare on the saddle point path, but it may lead to over-investment in the clean sector, thus causing the income distribution imbalance among entities. Further research suggests that the amount of carbon emissions permit acquired by the clean sector should be higher than the actual emissions in the trading market and that, as the cleaner support increases, the share of carbon emissions permit acquired by the sector should be constantly increased through reallocation mechanism. This helps achieve the Pareto improvement in all parties’ economic benefits.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"66 - 88"},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49102831","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract China has the largest energy system in the world, with fossil energy accounting for 84%. The carbon neutrality target calls for peaking carbon emissions by 2030 and achieving net zero carbon emissions by 2060. By then, the non-fossil energy will account for over 80% of China’s energy mix. Based on China’s national conditions, this paper makes scenario analysis of carbon peaking in 2030. The results of this paper indicate that the peak values of carbon emission in 2030 depends on both the development of clean energy and the growth of energy power demand. Therefore, the growth rate of the two should be balanced to control the peak carbon emission. High-quality economic growth in China in the context of carbon neutrality requires “double decoupling”, namely, decoupling GDP from the consumption of fossil energy and the growth of energy power demand as much as possible. To this end, this paper proposes a systematic solution considering both the demand and supply sides, with market-oriented measures that are workable for it. Ensuring the safe and stable supply of energy (power) is the basic principle of clean and low-carbon economic transformation, as well as a major challenge for energy system transformation. Therefore, it is necessary to develop a path for coal power decommissioning and low-carbon transformation in line with China’s national conditions.
{"title":"China’s High-Quality Economic Growth in the Process of Carbon Neutrality","authors":"Boqiang Lin","doi":"10.1515/cfer-2022-0020","DOIUrl":"https://doi.org/10.1515/cfer-2022-0020","url":null,"abstract":"Abstract China has the largest energy system in the world, with fossil energy accounting for 84%. The carbon neutrality target calls for peaking carbon emissions by 2030 and achieving net zero carbon emissions by 2060. By then, the non-fossil energy will account for over 80% of China’s energy mix. Based on China’s national conditions, this paper makes scenario analysis of carbon peaking in 2030. The results of this paper indicate that the peak values of carbon emission in 2030 depends on both the development of clean energy and the growth of energy power demand. Therefore, the growth rate of the two should be balanced to control the peak carbon emission. High-quality economic growth in China in the context of carbon neutrality requires “double decoupling”, namely, decoupling GDP from the consumption of fossil energy and the growth of energy power demand as much as possible. To this end, this paper proposes a systematic solution considering both the demand and supply sides, with market-oriented measures that are workable for it. Ensuring the safe and stable supply of energy (power) is the basic principle of clean and low-carbon economic transformation, as well as a major challenge for energy system transformation. Therefore, it is necessary to develop a path for coal power decommissioning and low-carbon transformation in line with China’s national conditions.","PeriodicalId":66259,"journal":{"name":"China Finance and Economic Review","volume":"11 1","pages":"3 - 22"},"PeriodicalIF":0.0,"publicationDate":"2022-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42895341","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}