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China faces significant challenges related to global warming caused by CO2 emissions, and the power industry is a large CO2 emitter. The decomposition and accurate forecasting of CO2 emissions in China’s power sector are thus crucial for low-carbon outcomes. This paper selects seven socio-economic and technological drivers related to the power sector, and decomposes CO2 emissions based on two models: the extended stochastic impacts by regression on population, affluence and technology (STIRPAT) model and the partial least square (PLS) model. Distinguished from previous research, our study first compares the effects of eliminating the multicollinearity of the PLS model with stepwise regression and ridge regression, finding that PLS is superior. Further, the decomposition results show the factors’ absolute elasticity coefficients are population (2.58) &gt; line loss rate (1.112) &gt; GDP per capita (0.669) &gt; generation structure (0.522) &gt; the urbanization level (0.512) &gt; electricity intensity (0.310) &gt; industrial structure (0.060). Meanwhile, a novel hybrid PLS-Grey-Markov model is proposed, and is verified to have better precision for the CO2 emissions of the power sector compared to the selected models, such as ridge regression-Grey-Markov, PLS-Grey-Markov, PLS-Grey and PLS-BP (Back propagation neutral network model). The forecast results suggest that CO2 emissions of the power sector will increase to 5102.9 Mt by 2025. Consequently, policy recommendations are proposed to achieve low-carbon development in aspects of population, technology, and economy.

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Decomposition and Forecasting of CO2 Emissions in China’s Power Sector Based on STIRPAT Model with Selected PLS Model and a Novel Hybrid PLS-Grey-Markov Model