The impact of resident demand on industrial carbon emissions and the transmission path: Evidence from Zhejiang Province

Abstract

The industrial sector is the main source of carbon emissions in most developing countries. Little research has been conducted on demand-side factors and how the demand side affects industrial emissions through the supply side. Therefore, this article selects 2004–2019 panel data on Zhejiang Province, and a multiple linear regression model and a multiple mediating effects model are adopted to explore the impact mechanism and relationship between demand and industrial emissions. We find the following: (i) There is a significant positive influence of demand on emissions, and (ii) demand has an indirect inhibitory effect on industrial emissions through factor market distortion and an indirect promoting effect through technological innovation and energy consumption. (iii) There are two chain intermediary paths led by factor market distortion that have a negative impact on industrial emissions and a chain path led by technological innovation that has a positive impact.