The two-stage factors driving changes in China's industrial SO2 emission intensity: A production-theoretical decomposition analysis

Exploring the efficiency and technology related driving factors of China's industrial sulfur dioxide (SO2) emission intensity change from a staged perspective is significant for reducing emissions in an efficient way. This study shows how efficiency and technology related factors at two stages, cleaner production and end-of-pipe treatment, influence changes in China's industrial SO2 emission intensity, by implementing a two-stage production-theoretical decomposition analysis (PDA) approach. The empirical research was conducted by decomposing changes in China's industrial SO2 emission intensity during 2011-2015. The results show that potential pollution intensity and treatment technological change substantially benefited the industrial SO2 emission intensity reduction, while changes in the treatment technical efficiency largely inhibited decreases in the industrial SO2 emission intensity. At the regional level, the decrease in industrial SO2 emission intensity created by production technological change occurred in the eastern and north-eastern regions, while this factor increased industrial SO2 emission intensity in the western and central regions. This study also found that changes in treatment technological change reduced industrial SO2 emission intensity in all four regions. Based on the decomposition results, this paper makes targeted policy recommendations for different levels of governments.