Structural Path Analysis of Fossil Fuel Based CO2 Emissions: A Case Study for China

Environmentally extended input-output analysis (EEIOA) has long been used to quantify global and regional environmental impacts and to clarify emission transfers. Structural path analysis (SPA), a technique based on EEIOA, is especially useful for measuring significant flows in this environmental-economic system. This paper constructs an imports-adjusted single-region input-output (SRIO) model considering only domestic final use elements, and it uses the SPA technique to highlight crucial routes along the production chain in both final use and sectoral perspectives. The results indicate that future mitigation policies on household consumption should change direct energy use structures in rural areas, cut unreasonable demand for power and chemical products, and focus on urban areas due to their consistently higher magnitudes than rural areas in the structural routes. Impacts originating from government spending should be tackled by managing onsite energy use in 3 major service sectors and promoting cleaner fuels and energy-saving techniques in the transport sector. Policies on investment should concentrate on sectoral interrelationships along the production chain by setting up standards to regulate upstream industries, especially for the services, construction and equipment manufacturing sectors, which have high demand pulling effects. Apart from the similar methods above, mitigating policies in exports should also consider improving embodied technology and quality in manufactured products to achieve sustainable development. Additionally, detailed sectoral results in the coal extraction industry highlight the onsite energy use management in large domestic companies, emphasize energy structure rearrangement, and indicate resources and energy safety issues. Conclusions based on the construction and public administration sectors reveal that future mitigation in secondary and tertiary industries should be combined with upstream emission intensive industries in a systematic viewpoint to achieve sustainable development. Overall, SPA is a useful tool in empirical studies, and it can be used to analyze national environmental impacts and guide future mitigation policies.