Revealing energy and water hidden in Chinese regional critical carbon supply chains

Abstract

In the context of “carbon peaking” and “carbon neutrality” and significant differences in regional industrial structure of China, this study identified energy and water resources embodied in the top 15 CO2 supply chains of each province in 2017 using the environmentally extended multiregional input–output and structural path analysis method. It also explored the impact of reducing CO2 along these critical supply chains on regional energy and water resources. The study showed that the critical CO2 supply chains in 30 provinces embodied 1859.2 Mt CO2 emissions, accounting for 24% of the total national final consumption. Meanwhile, these supply chains also embodied 354.9 Mt energy and 25033 Mt water resource, accounting for 17% and 5% of total national consumption, respectively. A tradeoff of energy and water resources existed in the low-carbon transition in upstream sectors, while the downstream sector had a great carbon–energy–water synergy potential. The shift of fixed capital investment from conventional construction to new infrastructure with less consumption of both energy and water was conducive to the sustainable development of resources and the environment. Thus, this study provided some suggestions for a low-carbon transition promoting the sustainable management of energy and water resources in all regions.