Unexpected PM2.5-related emissions and accompanying environmental-economic inequalities driven by “clean” tertiary industry in China

Abstract

The tertiary industry, led by service sectors, usually have “clean” production processes and thus is ignored by current PM2.5 pollution mitigation strategies in China. Actually, the tertiary industry heavily relies on the supplies from its upstream industries, resulting in pollutant emissions and economic benefits transferring among different regions. With the application of the multiregional input–output (MRIO) model, our study explores the emission contribution from the tertiary industry's consumption activities in China and analyses the accompanying emission-economy relationship. We find that the production process of tertiary industry (with the sector Transportation excluded) contributes only ∼1 % of China's PM2.5-related emissions in 2017. However, its consumption-based emission contributions could increase to 11 %–17 %, among which >95 % are indirectly contributed. More than 40 % of tertiary industry consumption-based emissions, accompanied by 25 % of the consumption-based value added, are transferred via interprovincial trade. The proportion of transferred emissions even exceeds 50 % for the top 10 importers. The spatial pattern of value-added flows is nearly opposite to that of emission flows. Our results also reveal that among the 30 provinces and 870 interprovincial trading pairs, 6 provinces are experiencing environmental-economic win, 7 provinces are experiencing environmental-economic loss, and in detail 326 trading pairs are experiencing environmental-economic win or loss. To reduce the unexpected emissions and inequalities embodied in seemingly “clean” industries, consumption activities should be considered and strengthened in China's new-stage environmental policies.