Transition towards dual control of CO2 emissions and intensity through supply chain management in China

Abstract

To mitigate global climate change and achieve CO2 emissions reduction goals, China proposed to shift to dual control of total CO2 emissions (CE) and CO2 emissions intensity (CEI) as early as possible. Accurately assessing provincial sectoral CE and CEI and developing reasonable regulatory strategies is a prerequisite for achieving the goal of dual control. However, there is a lack of comprehensive analysis from different perspectives of the supply chain. Therefore, this paper evaluates the CE and CEI in provincial sectors of China in 2017 from production-based and consumption-based perspectives according to multi-regional input-output (MRIO) model. Then, we analyze the supply chain of transmission sector by betweenness-based method as a supplementary perspective. The results show that: (1) The CE and CEI from different perspectives are different and can complement each other. (2) Production and distribution of electric power and heat power in Inner Mongolia (P5D24), construction in Jiangsu (P10D27), distribution of electric power and heat power in Beijing (P1D24) are the critical sectors for dual control of CE and CEI from production, consumption, betweenness-based perspectives, respectively. (3) Construction in Jiangsu (P10D27) and Shanxi (P4D27) have the highest embodied CE and CEI in China respectively. Energy and raw material sectors from upstream supply chain contribute large CE to construction sectors. This research suggests that paying attention to critical sectors from different perspectives of the supply chain and taking different measures to decrease CO2 emissions. Taking both CE and CEI into consideration and allocating CO2 emissions reduction pressures reasonably among provincial sectors. At the same time, taking care of relevant upstream sectors of the supply chain to help a single sector achieve CO2 emissions reduction goals and promote China's transition to dual control of CE and CEI.