Economic Growth, Energy Use, and Greenhouse Gases Emission in Macao SAR, China

Abstract

Acity’s economic structure and energy mix would changewhen the city is developed to accommodatemore residents, visitors, and activities. This paper reviews Macao’s economic growth, energy use, andgreenhouse gases (GHG) emission from 1985 to 2020. Specifically, Macao’s gross domestic product(GDP), energy use, and GHG emission have surged after the gaming industry was liberalized in 2002.The official data show that Macao’s GDP was MOP 11 billion in 1985, increased by four-fold to MOP54 billion in 2000, and then surged rapidly to MOP 445 billion in 2019. Additionally, Macao’stotalenergy use increased from 8,840 TJ in 1985 to 48,330 TJ in 2019 while Macao’s GHG emissionincreased from 0.70 Mt of CO2-equivalent in 1985 to 6.13 Mt of CO2-equivalent in 2019. Macao’sGHG emission from all local sources per capita and GDP per capita exhibit an inverted U-shapedrelationship, showing an environmental Kuznets curve. Due to the negative impact of COVID-19pandemic, Macao’s GDP dropped by 56% to MOP 194 billion while its total energy use and GHGemission droppedby33% and 17% to 32,198 TJand 5.06 Mtof CO2-equivalent,respectively, in 2020.