IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v171y2016icp456-467.html
   My bibliography  Save this article

Sensitivity analysis of technology and supply change for CO2 emission intensity of energy-intensive industries based on input–output model

Author

Listed:
  • Yan, Junna
  • Zhao, Tao
  • Kang, Jidong

Abstract

Sensitivity analysis based on Leontief model is applied for identifying the key factors leading to the change of CO2 emission or energy consumption in the competitive market from demand perspective. On the other hand, this kind of research from supply-side is also valuable for the economy with characteristics of rationing. Based on previous research achievements, this paper developed out sensitivity analysis based on the Ghosh model. In addition, we implemented sensitivity analysis based on the Leontief and Ghosh model respectively to study the most sensitive factors leading to the change of CO2 emission intensities of the six energy-intensive industries. In terms of 2010 Chinese symmetrical input–output table, the results obtained from the two sensitivity analyses are different. From the demand perspective, the level of production technology in the construction industry plays very important role in the CO2 emission intensity of energy-intensive industries. While, from the supply side, the adjustment of rationing in extraction of petroleum and nature gas should be paid more attention. At last, comparative analysis was carried out and corresponding policy suggestions were put forward. Emphatically, the method used in this paper could be applied to other industries within supply chains of a country, even in the world wide.

Suggested Citation

  • Yan, Junna & Zhao, Tao & Kang, Jidong, 2016. "Sensitivity analysis of technology and supply change for CO2 emission intensity of energy-intensive industries based on input–output model," Applied Energy, Elsevier, vol. 171(C), pages 456-467.
  • Handle: RePEc:eee:appene:v:171:y:2016:i:c:p:456-467
    DOI: 10.1016/j.apenergy.2016.03.081
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261916304019
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.apenergy.2016.03.081?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhu, Bing & Zhou, Wenji & Hu, Shanying & Li, Qiang & Griffy-Brown, Charla & Jin, Yong, 2010. "CO2 emissions and reduction potential in China’s chemical industry," Energy, Elsevier, vol. 35(12), pages 4663-4670.
    2. Fernández González, P. & Landajo, M. & Presno, M.J., 2014. "Tracking European Union CO2 emissions through LMDI (logarithmic-mean Divisia index) decomposition. The activity revaluation approach," Energy, Elsevier, vol. 73(C), pages 741-750.
    3. Duarte, Rosa & Mainar, Alfredo & Sánchez-Chóliz, Julio, 2013. "The role of consumption patterns, demand and technological factors on the recent evolution of CO2 emissions in a group of advanced economies," Ecological Economics, Elsevier, vol. 96(C), pages 1-13.
    4. Su, Bin & Huang, H.C. & Ang, B.W. & Zhou, P., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation," Energy Economics, Elsevier, vol. 32(1), pages 166-175, January.
    5. Chandran Govindaraju, V.G.R. & Tang, Chor Foon, 2013. "The dynamic links between CO2 emissions, economic growth and coal consumption in China and India," Applied Energy, Elsevier, vol. 104(C), pages 310-318.
    6. Tarancón, Miguel Ángel & del Río, Pablo & Callejas, Fernando, 2011. "Determining the responsibility of manufacturing sectors regarding electricity consumption. The Spanish case," Energy, Elsevier, vol. 36(1), pages 46-52.
    7. Erik Dietzenbacher, 2002. "Interregional Multipliers: Looking Backward, Looking Forward," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 125-136.
    8. Zhou, Kaile & Yang, Shanlin & Shen, Chao & Ding, Shuai & Sun, Chaoping, 2015. "Energy conservation and emission reduction of China’s electric power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 10-19.
    9. Zhang, Ming & Li, Huanan & Zhou, Min & Mu, Hailin, 2011. "Decomposition analysis of energy consumption in Chinese transportation sector," Applied Energy, Elsevier, vol. 88(6), pages 2279-2285, June.
    10. Vause, Jonathan & Gao, Lijie & Shi, Longyu & Zhao, Jingzhu, 2013. "Production and consumption accounting of CO2 emissions for Xiamen, China," Energy Policy, Elsevier, vol. 60(C), pages 697-704.
    11. Cai, Yiyong & Arora, Vipin, 2015. "Disaggregating electricity generation technologies in CGE models: A revised technology bundle approach with an application to the U.S. Clean Power Plan," Applied Energy, Elsevier, vol. 154(C), pages 543-555.
    12. Alcántara, Vicent & del Río, Pablo & Hernández, Félix, 2010. "Structural analysis of electricity consumption by productive sectors. The Spanish case," Energy, Elsevier, vol. 35(5), pages 2088-2098.
    13. Wu, Rong-Hwa & Chen, Chia-Yon, 1990. "On the application of input-output analysis to energy issues," Energy Economics, Elsevier, vol. 12(1), pages 71-76, January.
    14. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    15. Chang, Yuan & Ries, Robert J. & Wang, Yaowu, 2010. "The embodied energy and environmental emissions of construction projects in China: An economic input-output LCA model," Energy Policy, Elsevier, vol. 38(11), pages 6597-6603, November.
    16. Zhang, Haiyan & Lahr, Michael L., 2014. "China's energy consumption change from 1987 to 2007: A multi-regional structural decomposition analysis," Energy Policy, Elsevier, vol. 67(C), pages 682-693.
    17. Su, Bin & Ang, B.W., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of spatial aggregation," Ecological Economics, Elsevier, vol. 70(1), pages 10-18, November.
    18. Parikh, Jyoti & Panda, Manoj & Ganesh-Kumar, A. & Singh, Vinay, 2009. "CO2 emissions structure of Indian economy," Energy, Elsevier, vol. 34(8), pages 1024-1031.
    19. Kang, Jidong & Zhao, Tao & Liu, Nan & Zhang, Xin & Xu, Xianshuo & Lin, Tao, 2014. "A multi-sectoral decomposition analysis of city-level greenhouse gas emissions: Case study of Tianjin, China," Energy, Elsevier, vol. 68(C), pages 562-571.
    20. Manfred Lenzen & Lise-Lotte Pade & Jesper Munksgaard, 2004. "CO2 Multipliers in Multi-region Input-Output Models," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 391-412.
    21. Su, Bin & Ang, B.W., 2014. "Input–output analysis of CO2 emissions embodied in trade: A multi-region model for China," Applied Energy, Elsevier, vol. 114(C), pages 377-384.
    22. Xu, Shi-Chun & He, Zheng-Xia & Long, Ru-Yin, 2014. "Factors that influence carbon emissions due to energy consumption in China: Decomposition analysis using LMDI," Applied Energy, Elsevier, vol. 127(C), pages 182-193.
    23. Bin Su & B. W. Ang, 2012. "Structural Decomposition Analysis Applied To Energy And Emissions: Aggregation Issues," Economic Systems Research, Taylor & Francis Journals, vol. 24(3), pages 299-317, March.
    24. Zhang, Youguo, 2010. "Supply-side structural effect on carbon emissions in China," Energy Economics, Elsevier, vol. 32(1), pages 186-193, January.
    25. Tarancón Morán, Miguel Ángel & del Ri­o, Pablo & Albiñana, Fernando Callejas, 2008. "Tracking the genealogy of CO2 emissions in the electricity sector: An intersectoral approach applied to the Spanish case," Energy Policy, Elsevier, vol. 36(6), pages 1915-1926, June.
    26. Chen, G.Q. & Zhang, Bo, 2010. "Greenhouse gas emissions in China 2007: Inventory and input-output analysis," Energy Policy, Elsevier, vol. 38(10), pages 6180-6193, October.
    27. Chen, Wenying & Yin, Xiang & Ma, Ding, 2014. "A bottom-up analysis of China’s iron and steel industrial energy consumption and CO2 emissions," Applied Energy, Elsevier, vol. 136(C), pages 1174-1183.
    28. Su, Bin & Ang, B.W., 2015. "Multiplicative decomposition of aggregate carbon intensity change using input–output analysis," Applied Energy, Elsevier, vol. 154(C), pages 13-20.
    29. Rodrigues, Joao & Domingos, Tiago & Giljum, Stefan & Schneider, Francois, 2006. "Designing an indicator of environmental responsibility," Ecological Economics, Elsevier, vol. 59(3), pages 256-266, September.
    30. Liu, Hongguang & Liu, Weidong & Fan, Xiaomei & Zou, Wei, 2015. "Carbon emissions embodied in demand–supply chains in China," Energy Economics, Elsevier, vol. 50(C), pages 294-305.
    31. Davidsdottir, B. & Fisher, M., 2011. "The odd couple: The relationship between state economic performance and carbon emissions economic intensity," Energy Policy, Elsevier, vol. 39(8), pages 4551-4562, August.
    32. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    33. Hondo, Hiroki & Sakai, Shinsuke & Tanno, Shiro, 2002. "Sensitivity analysis of total CO2 emission intensities estimated using an input-output table," Applied Energy, Elsevier, vol. 72(3-4), pages 689-704, July.
    34. Dai, Hancheng & Masui, Toshihiko & Matsuoka, Yuzuru & Fujimori, Shinichiro, 2011. "Assessment of China's climate commitment and non-fossil energy plan towards 2020 using hybrid AIM/CGE model," Energy Policy, Elsevier, vol. 39(5), pages 2875-2887, May.
    35. Alcántara, Vicent & Tarancón, Miguel-Angel & del Río, Pablo, 2013. "Assessing the technological responsibility of productive structures in electricity consumption," Energy Economics, Elsevier, vol. 40(C), pages 457-467.
    36. Bi, Jun & Zhang, Rongrong & Wang, Haikun & Liu, Miaomiao & Wu, Yi, 2011. "The benchmarks of carbon emissions and policy implications for China's cities: Case of Nanjing," Energy Policy, Elsevier, vol. 39(9), pages 4785-4794, September.
    37. Liu, Wei & Li, Hong, 2011. "Improving energy consumption structure: A comprehensive assessment of fossil energy subsidies reform in China," Energy Policy, Elsevier, vol. 39(7), pages 4134-4143, July.
    38. Su, Bin & Ang, B.W., 2013. "Input–output analysis of CO2 emissions embodied in trade: Competitive versus non-competitive imports," Energy Policy, Elsevier, vol. 56(C), pages 83-87.
    39. Tarancon, Miguel Angel & Del Río, Pablo, 2012. "Assessing energy-related CO2 emissions with sensitivity analysis and input-output techniques," Energy, Elsevier, vol. 37(1), pages 161-170.
    40. Liu, Zhu & Liang, Sai & Geng, Yong & Xue, Bing & Xi, Fengming & Pan, Ying & Zhang, Tianzhu & Fujita, Tsuyoshi, 2012. "Features, trajectories and driving forces for energy-related GHG emissions from Chinese mega cites: The case of Beijing, Tianjin, Shanghai and Chongqing," Energy, Elsevier, vol. 37(1), pages 245-254.
    41. Zhu, Qin & Peng, Xizhe & Wu, Kaiya, 2012. "Calculation and decomposition of indirect carbon emissions from residential consumption in China based on the input–output model," Energy Policy, Elsevier, vol. 48(C), pages 618-626.
    42. Begum, Rawshan Ara & Sohag, Kazi & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "CO2 emissions, energy consumption, economic and population growth in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 594-601.
    43. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rao, Guangming & Liao, Jiao & Zhu, Yanping & Guo, Lin, 2022. "Decoupling of economic growth from CO2 emissions in Yangtze River Economic Belt sectors: A sectoral correlation effects perspective," Applied Energy, Elsevier, vol. 307(C).
    2. Su, Bin & Ang, B.W., 2015. "Multiplicative decomposition of aggregate carbon intensity change using input–output analysis," Applied Energy, Elsevier, vol. 154(C), pages 13-20.
    3. Das, Aparna & Paul, Saikat Kumar, 2014. "CO2 emissions from household consumption in India between 1993–94 and 2006–07: A decomposition analysis," Energy Economics, Elsevier, vol. 41(C), pages 90-105.
    4. Zhu, Bangzhu & Su, Bin & Li, Yingzhu, 2018. "Input-output and structural decomposition analysis of India’s carbon emissions and intensity, 2007/08 – 2013/14," Applied Energy, Elsevier, vol. 230(C), pages 1545-1556.
    5. Changjian Wang & Fei Wang, 2015. "Structural Decomposition Analysis of Carbon Emissions and Policy Recommendations for Energy Sustainability in Xinjiang," Sustainability, MDPI, vol. 7(6), pages 1-20, June.
    6. Su, Bin & Ang, B.W., 2017. "Multiplicative structural decomposition analysis of aggregate embodied energy and emission intensities," Energy Economics, Elsevier, vol. 65(C), pages 137-147.
    7. Su, Bin & Thomson, Elspeth, 2016. "China's carbon emissions embodied in (normal and processing) exports and their driving forces, 2006–2012," Energy Economics, Elsevier, vol. 59(C), pages 414-422.
    8. Kim, Yong-Gun & Yoo, Jonghyun & Oh, Wankeun, 2015. "Driving forces of rapid CO2 emissions growth: A case of Korea," Energy Policy, Elsevier, vol. 82(C), pages 144-155.
    9. Zhang, Xiaomei & Su, Bin & Yang, Jun & Cong, Jianhui, 2022. "Analysis of Shanxi Province's energy consumption and intensity using input-output framework (2002–2017)," Energy, Elsevier, vol. 250(C).
    10. Zhang, Zhonghua & Zhao, Yuhuan & Su, Bin & Zhang, Yongfeng & Wang, Song & Liu, Ya & Li, Hao, 2017. "Embodied carbon in China’s foreign trade: An online SCI-E and SSCI based literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 492-510.
    11. Tao Lin & Junna Yan, 2017. "Investigating the sensitivity factors of household indirect CO2 emission from the production side," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(2), pages 721-740, September.
    12. Su, Bin & Ang, B.W. & Low, Melissa, 2013. "Input–output analysis of CO2 emissions embodied in trade and the driving forces: Processing and normal exports," Ecological Economics, Elsevier, vol. 88(C), pages 119-125.
    13. Li, Yingzhu & Su, Bin & Dasgupta, Shyamasree, 2018. "Structural path analysis of India's carbon emissions using input-output and social accounting matrix frameworks," Energy Economics, Elsevier, vol. 76(C), pages 457-469.
    14. Zhu, Bangzhu & Su, Bin & Li, Yingzhu & Ng, Tsan Sheng, 2020. "Embodied energy and intensity in China’s (normal and processing) exports and their driving forces, 2005-2015," Energy Economics, Elsevier, vol. 91(C).
    15. Fernández González, P. & Presno, M.J. & Landajo, M., 2015. "Regional and sectoral attribution to percentage changes in the European Divisia carbonization index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1437-1452.
    16. Su, Bin & Ang, B.W., 2013. "Input–output analysis of CO2 emissions embodied in trade: Competitive versus non-competitive imports," Energy Policy, Elsevier, vol. 56(C), pages 83-87.
    17. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    18. Boya Zhang & Shukuan Bai & Yadong Ning & Tao Ding & Yan Zhang, 2020. "Emission Embodied in International Trade and Its Responsibility from the Perspective of Global Value Chain: Progress, Trends, and Challenges," Sustainability, MDPI, vol. 12(8), pages 1-26, April.
    19. Qi, Tianyu & Winchester, Niven & Karplus, Valerie J. & Zhang, Xiliang, 2014. "Will economic restructuring in China reduce trade-embodied CO2 emissions?," Energy Economics, Elsevier, vol. 42(C), pages 204-212.
    20. Liu, Hongtao & Polenske, Karen R. & Guilhoto, Joaquim José Martins & Xi, Youmin, 2014. "Direct and indirect energy use in China and the United States," Energy, Elsevier, vol. 71(C), pages 414-420.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:171:y:2016:i:c:p:456-467. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.