Carbon emission intensity and biased technical change in China’s different regions: a novel multidimensional decomposition approach

The decomposition analysis has been employed to discover the driving factors of carbon emission intensity, but the current studies assume that production functions are under the condition of the neutral technical change. Grounded on biased technical change production theory, this paper proposes a novel multidimensional decomposition approach which combines production-theory decomposition analysis (PDA) and index decomposition analysis (IDA). This novel approach can illustrate how energy structure effect, element substitution effect, efficiency change effect, input biased technical change, output biased technical change and magnitude of technical change affect carbon emission intensity of China’s 30 provinces. The results indicate that during the 11th FYP and 13th FYP, output biased technical change and the magnitude of technical change are the critical factors in China’s carbon emission intensity, while other four drivers increase carbon emissions. But, during the 12th FYP, the role of six drivers has been reversed contrasting 11th FYP and 13th FYP. In addition, we also explore the impact of each driver from the perspective of regional heterogeneity.