Saving less in China facilitates global CO2 mitigation.

Transforming China’s economic growth pattern from investment-driven to consumption-driven can significantly change global CO2 emissions. This study is the first to analyse the impacts of changes in China’s saving rates on global CO2 emissions both theoretically and empirically. Here, we show that the increase in the saving rates of Chinese regions has led to increments of global industrial CO2 emissions by 189 million tonnes (Mt) during 2007–2012. A 15-percentage-point decrease in the saving rate of China can lower global CO2 emissions by 186 Mt, or 0.7% of global industrial CO2 emissions. Greener consumption in China can lead to a further 14% reduction in global industrial CO2 emissions. In particular, decreasing the saving rate of Shandong has the most massive potential for global CO2 reductions, while that of Inner Mongolia has adverse effects. Removing economic frictions to allow the production system to fit China’s increased consumption can facilitate global CO2 mitigation. The partial effects of saving rate changes on CO2 emissions remain unclear. Here the authors found that the increase in saving rates of China has led to increments of global industrial CO2 emissions by 189 million tonnes (Mt) during 2007-2012, while global CO2 emissions would be reduced by 186 Mt if the saving rates of China decreased by 15 percentage points.