Cutting CO2 emissions through demand side regulation: Implications from multi-regional input–output linear programming model
Nan LIU1, Jidong KANG2(), Tsan Sheng NG3, Bin SU3
1. School of Management, Tianjin Normal University, Tianjin 300387, China; Energy Studies Institute, National University of Singapore, Singapore 119620, Singapore 2. Energy Studies Institute, National University of Singapore, Singapore 119620, Singapore 3. Energy Studies Institute, National University of Singapore, Singapore 119620, Singapore; Department of Industrial & Systems Engineering and Management, National University of Singapore, Singapore 117576, Singapore
This study combines multi-regional input–output (MRIO) model with linear programming (LP) model to explore economic structure adjustment strategies for the reduction of carbon dioxide (CO2) emissions. A particular feature of this study is the identification of the optimal regulation sequence of final products in various regions to reduce CO2 emissions with the minimum loss in gross domestic product (GDP). By using China’s MRIO tables 2017 with 28 regions and 42 economic sectors, results show that reduction in final demand leads to simultaneous reductions in GDP and CO2 emissions. Nevertheless, certain demand side regulation strategy can be adopted to lower CO2 emissions at the smallest loss of economic growth. Several key final products, such as metallurgy, nonmetal, metal, and chemical products, should first be regulated to reduce CO2 emissions at the minimum loss in GDP. Most of these key products concentrate in the coastal developed regions in China. The proposed MRIO–LP model considers the inter-relationship among various sectors and regions, and can aid policy makers in designing effective policy for industrial structure adjustment at the regional level to achieve the national environmental and economic targets.
. [J]. Frontiers of Engineering Management, 2022, 9(3): 452-461.
Nan LIU, Jidong KANG, Tsan Sheng NG, Bin SU. Cutting CO2 emissions through demand side regulation: Implications from multi-regional input–output linear programming model. Front. Eng, 2022, 9(3): 452-461.
Repair service of metal products, machinery and equipment
S03
Petroleum and gas
S24
Electricity and hot water production and supply
S04
Metal mining
S25
Gas production and supply
S05
Nonmetal mining
S26
Water production and supply
S06
Food processing and tobaccos
S27
Construction
S07
Textile
S28
Wholesale and retailing
S08
Clothing, leather, fur, etc.
S29
Transport and storage
S09
Wood processing and furnishing
S30
Hotel and restaurant
S10
Paper making, printing, stationery, etc.
S31
Information transmission, software and information technology services
S11
Petroleum refining, coking, etc.
S32
Finance
S12
Chemical industry
S33
Real estate
S13
Nonmetal mineral products
S34
Leasing and commercial services
S14
Metallurgy
S35
Scientific research
S15
Metal products
S36
Technical service
S16
General machinery
S37
Water conservancy, environment and public facilities management
S17
Specialist machinery
S38
Resident services, repairs and other services
S18
Transport equipment
S39
Education
S19
Electrical equipment
S40
Health and social work
S20
Electronic equipment
S41
Culture, sports and entertainment
S21
Instrument and meter
S42
Public administration, social security and social organizations
Tab.2
Fig.1
Pareto solution
1
2
3
4
5
6
7
8
9
10
CO2 emissions reduction (%)
0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
GDP reduction (%)
0
0.4
1.0
1.7
2.3
3.1
3.9
4.7
5.9
7.7
Ratio (yuan/ton CO2)
–
2528
2922
3133
3324
3517
3661
3830
4163
4842
Number of regulated sectors
0
32
48
53
83
87
103
136
186
224
Tab.3
Optimal sequence
Products
Regions
UEMC (yuan/ton)
1
Metallurgy
Jing–Jin
1839
2
Metallurgy
South Coast
2156
3
Metallurgy
Central Coast
2465
4
Metallurgy
Northeast
2581
5
Metallurgy
North Coast
2585
6
Metallurgy
Central
2737
7
Metallurgy
Southwest
2916
8
Metallurgy
Northwest
2951
9
Instrumentation
North Coast
3197
10
Instrumentation
Northwest
3230
11
Nonmetal mineral products
Jing–Jin
3331
12
Nonmetal mineral products
North Coast
3387
13
Nonmetal mineral products
South Coast
3497
14
Instrumentation
South Coast
3508
15
Nonmetal mineral products
Northeast
3519
16
Nonmetal mineral products
Central Coast
3597
17
Instrumentation
Central Coast
3697
18
Metal products
Jing–Jin
3733
19
Nonmetal mineral products
Central
3843
20
Instrumentation
Jing–Jin
3874
21
Nonmetal mineral products
Southwest
4028
22
Instrumentation
Southwest
4036
23
Instrumentation
Central
4039
24
Instrumentation
Northeast
4107
25
Chemical industry
North Coast
4542
26
Repair service of metal products, machinery and equipment
South Coast
4549
27
Nonmetal mineral products
Northwest
4641
28
Metal products
Northeast
4740
29
Metal products
South Coast
4756
30
Metal products
North Coast
4771
31
Chemical industry
South Coast
4776
32
Repair service of metal products, machinery and equipment
Southwest
4822
Tab.4
Fig.2
Fig.3
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