[The impact of stricter standards on co2 emission across industries]

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[Zhizhan Duan,School of Economics and Management, Beihang Univerisity, 18810293832,

[Dongwen Tian, School of Economics and Management, Beihang Univerisity, 13671061586,

[Chuang Xu, School of Economics and Management, Beihang Univerisity, 13141468948,

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Overview

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China has replaced the US and became the largest emitter of carbon dioxide(Gregg etal.,2008).However,large amount of the emission was from exports(Peters and Hertwich,2008).Weber et al.(2008) analysis the emissions in China’s exports base on single-region IO.Since the 12th five-year plan published,China has made great effort to reduce the emission of CO2. In this paper we examine the effect of embodied carbon emission reduction across industries according to the target of 12th five-year plan.

Methods

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This paper is based on input-output analysis(IOA),which was developed byWassily Leontief.

We assume that there are n industries in a country:where,a column vector,represents the total output of a country. is the direct requirement coefficient matrix and is the final demand.So represents the intermediate input.

We can rewrite the equation above and get that:Then we can obtain :where and are both matrices and represents the direct CO2 emission per unit and embodied emissions respectively.

Finally,we analysis the change in embodied emission and find the probable cause

Results

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We find that the embodied emissions coefficient in some industries was decreased such as mining industry,chemical industry ,machinery and electrical equipment manufacturing industry.However the coefficients was increased in some industries such as agriculture and food manufacturing industry while there is no trend in the others such as service industry.

Conclusions

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By calculating the embodied emission coefficients across industries with input-output analysis, the results suggest that the stricter standards on CO2 emission have distinct impacts across industries.The policy leaded products with less emission to be consumed more in heavy industries such as machinery and electrical equipment manufacturing industry.However,it leadead high emitted products to be consumed more in some light industries such as agriculture and food manufacturing industry.

References

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