Transformations  in
Business & Economics

QUO VADIS? MAJOR PLAYERS IN GLOBAL COAL CONSUMPTION AND EMISSIONS REDUCTION
Jiandong Chen, Shulei Cheng, Vinko Nikic, Malin Song

ABSTRACT. The expansion of fossil fuel consumption, particularly that of coal, drives global socio-economic development and causes large-scale emissions of carbon dioxide (CO2). The key to the reduction of global CO2 emissions lies in whether major CO2 emitters can meet established reduction goals. This paper reviews the histories of China, the United States, and India in terms of their respective CO2 emission pathways, reflects on the motivations and mechanisms behind these changes, and predicts whether these three major CO2 emitters can control their coal consumption and promote reduction of global CO2 emissions. We conclude that China is decreasing its coal consumption, India is experiencing irreversible, increase of coal consumption, and the use of coal in the U.S. will depend largely on the energy and climate policies of the Trump administration. To achieve the goal of reduction of global CO2 emissions, the international community should not only increase its scrutiny of coal consumption and CO2 emissions in India but also emphasise the role of international cooperation, which is the only solution to tackling the reduction of CO2 emissions and limiting anthropogenic climate change as economic systems continue to globalise .

KEYWORDS:  emissions reduction, coal consumption, major CO2 emitters, logarithmic mean Divisia index, factor decomposition, China.

JEL classification:  O13, O57, Q41, Q48.