Analysis on the Factors Affecting of China's Electric Power Industry's Carbon Emission

This study uses Vector Autoregressive model to analyze the influencing factors of the changes in carbon dioxide emissions in the power industry. The results show that economic growth plays a dominant role in decreasing CO2 emissions. Energy efficiency has significant effect on CO2 emissions whilst urbanization also has important effect on emissions because of the vast expansion of city area and surge in electricity consumption. Power generation structure is more critical than industrialization in emission-reduction. Therefore, the Chinese government should increase investment in energy-saving technology, optimize energy structure, and promote the production.