LAUSR

Abstract China's pharmaceutical industry has experienced a rapid growth and is now facing a great challenge of reducing its CO2 emission. However, a detailed study concerning its energy consumption and corresponding CO2 emission characteristics, including emission trajectory, spatial distribution and driving forces at the whole sectoral scale is still lacking. In order to fill these research gaps, this study first uncovers the CO2 emission trajectory of China's pharmaceutical industry and then identifies the key driving forces of its emission growth by utilizing an extended Logarithmic Mean Divisia Index (LMDI) method. The results show that the total emission increased from 23.03 Mt in 2000 to 55.34 Mt in 2016. The consumptions of electricity, raw coal and heat were three major CO2 emission sources. From the provincial perspective, the top 5 provinces emitted 51.77% of the total CO2 emission in 2016, of which Shandong province was the biggest emitter, followed by Jiangsu, Jilin, Inner Mongolia and Ningxia. The analysis of relevant driving forces reveals that production scale effect was the most prominent factor of CO2 emission growth and investment intensity also contributed to CO2 emission growth. Conversely, energy intensity and R&D efficiency were the main contributors of CO2 emission reduction. Mitigation measures are finally proposed by considering the Chinese realities, including improving pharmaceutical industrial structure, promoting cleaner production strategy, encouraging rational R&D and investment activities, optimizing energy structure and initiating capacity-building efforts.