Economic and intensity effects of coal consumption in China

The increase in coal consumption and its impact on the environment has become a bottleneck that hinders sustainable development. This paper discusses the effect of economic growth and coal intensity on China's coal consumption during 2005-2017 using the Laspeyres index decomposition method. The decoupling of coal consumption from economic growth was examined in conjunction with the Tapio elasticity index, and the decoupling contributions of economic growth and coal intensity are further determined. The results indicated that economic growth drives an increase in coal consumption; however, the contribution rate declines gradually with decrease in economic growth rate in each province. Further research showed that the secondary industry is the main contributor to the increment, and the rapid development of tertiary industry increases indirect coal consumption. Coal intensity has a positive impact on curbing coal consumption, but it is not sufficient to offset the increment generated by the economic effect. Moreover, in each province, the curbing effect gradually decreased as the decline in coal intensity weakened in the secondary industry. Furthermore, coal consumption is weakly decoupled from economic growth over the long term, and the secondary industry will determine the future trend of decoupling.