Technology advance and the carbon dioxide emission in China - Empirical research based on the rebound effect

At present, technology advance is the greatest contributor to the carbon dioxide mitigation. However, the real effect of technology advance on mitigation is worth further studying due to the existence of rebound effect (RE). A key issue is how to quantify the relationship between technology advance and carbon dioxide emission accurately. This paper figures out a comprehensive and modified framework involving around the RE of carbon emission from the macroeconomic perspective. Using this framework, this paper quantitatively evaluates the relationship between technical change and carbon emission based on the data of 30 provinces in China. It is founded that: (1) the carbon RE is about 10-60% in Chinese provinces; (2) the RE of carbon emission differs among the regions in China; (3) carbon reduction and environment issues should be solved step by step regionally in China. (4) According to our results, a reasonable control on total energy consumption and fossil energy pricing adjustment, should be taken as the supplementary policy in China; at the same time, carbon financing, carbon trading and other aspects of institutional innovation should be taken into account at the appropriate time.