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Energy consumption and CO₂ emissions in China's cement industry: A perspective from LMDI decomposition analysis

Xu, Jin-Hua, Fleiter, Tobias, Eichhammer, Wolfgang, Fan, Ying
Energy policy 2012 v.50 pp. 821-832
best available technology, carbon dioxide, cement, economic development, energy, energy conservation, energy use and consumption, greenhouse gas emissions, infrastructure, issues and policy, manufacturing, China
We analyze the change of energy consumption and CO₂ emissions in China's cement industry and its driving factors over the period 1990–2009 by applying a log-mean Divisia index (LMDI) method. It is based on the typical production process for clinker manufacturing and differentiates among four determining factors: cement output, clinker share, process structure and specific energy consumption per kiln type. The results show that the growth of cement output is the most important factor driving energy consumption up, while clinker share decline, structural shifts mainly drive energy consumption down (similar for CO₂ emissions). These efficiency improvements result from a number of policies which are transforming the entire cement industry towards international best practice including shutting down many older plants and raising the efficiency standards of cement plants. Still, the efficiency gains cannot compensate for the huge increase in cement production resulting from economic growth particularly in the infrastructure and construction sectors. Finally, scenario analysis shows that applying best available technology would result in an additional energy saving potential of 26% and a CO₂ mitigation potential of 33% compared to 2009.