ASSESSING THE LOW-CARBON ECONOMY AND ITS IMPACT ON THE ENERGY CONSUMPTION: THE CASE OF CHINA

Abstract

China has declared its commitment to achieving peak carbon emissions by 2030, consistent with its broader objective of advancing towards a greener and more sustainable economic framework. A key element of this transition is the transformation of national energy consumption patterns. Drawing on data from 30 provinces between 2005 and 2020, this study constructs a comprehensive indicator to assess progress in low-carbon development. The analysis investigates the extent to which improvements in low-carbon practices affect energy utilisation, while distinguishing these effects from those linked to economic growth. Results demonstrate that enhanced low-carbon performance substantially reduces energy consumption across different measurement approaches. Additional robustness checks, conducted using a component index framework, support these findings. Notably, significant regional disparities emerge, with the western provinces exhibiting the most pronounced decline in energy demand. These variations suggest that low-carbon strategies are not uniformly effective across all regions and that regional characteristics influence outcomes. The study provides valuable insights into how tailored low-carbon measures can strengthen energy efficiency and contribute to national climate objectives. Such evidence equips policy-makers to design region-specific strategies that accelerate the shift towards a low-carbon economy while promoting balanced provincial development.