Cutting CO<sub>2</sub> emissions through demand side regulation: Implications from multi-regional input–output linear programming model

doi:10.1007/s42524-022-0209-1

Front. Eng

2022, Vol. 9

Issue (3) : 452-461 https://doi.org/10.1007/s42524-022-0209-1

RESEARCH ARTICLE

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

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Abstract

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.

Keywords CO₂ emissions demand side regulation multi-regional input–output model linear programming model

Corresponding Author(s): Jidong KANG

About author:

Tongcan Cui and Yizhe Hou contributed equally to this work.

Just Accepted Date: 09 June 2022 Online First Date: 11 August 2022 Issue Date: 05 September 2022

Cite this article:

Nan LIU,Jidong KANG,Tsan Sheng NG, et al. Cutting CO₂ emissions through demand side regulation: Implications from multi-regional input–output linear programming model[J]. Front. Eng, 2022, 9(3): 452-461.

URL:

https://academic.hep.com.cn/fem/EN/10.1007/s42524-022-0209-1
https://academic.hep.com.cn/fem/EN/Y2022/V9/I3/452

Tab.1 Eight geographical regions in China

Tab.2 42 economic sectors in China

Fig.1 Optimal Pareto frontier of GDP and CO₂ emissions in China.

Tab.3 10 Pareto optimal solutions generated by the MRIO–LP model

Tab.4 Optimal regulation sequence of top 32 final products in China

Fig.2 Percentage reduction in GDP and CO₂ emissions in various sectors by regulating the key 32 products in China.

Fig.3 Percentage reduction in GDP and CO₂ emissions in various regions by regulating the key 32 products in China.

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