1. on CO2 Emission Across Industries
The Impact of Stricter Standards
on CO2 Emission Across Industries
School of Economics and Management
Beihang University
Dongwen Tian

2. Introduction
Methodology and data
Results
Conclusions

3. Introduction 1
The CO2 emissions with the increasing greenhouse effect is now the global concern
China has become the largest CO2 emitter in the world, and has implemented many policies to control it
The reduction of the emissions will inevitably influence the growth of GDP
However, Chinese government is making its effort to control the emissions

4. 1 Introduction Policies implemented in China
The 11th five-year plan (2006)
to improve the production and consumption structure and build a stable, economic, clean and safe energy supply system
China’s national programme to address climate change (2007)
Clarified the specific objectives, principles, key industries and actions to cope with the climate change
China’s policies and actions for addressing climate change (each year since 2008)
Introduced various methods to control the emissions across industries
The 12th five-year plan (2011)
To control the emissions and establish the low-carbon product standards

5. Methodology and data 2
IOA (input-output analysis): to estimate the emissions across 17 manufacturing industries in China ( )
Direct Carbon Emissions Coefficient
The emissions of various types of energy (including coal, coke, crude oil, gasoline, diesel, kerosene, fuel oil, natural gas) are calculated based on the equation provided by IPCC:

6. 2 Methodology and data net calorific value
China Energy Statistical Yearbook
CO2 emission factor
2006 IPCC Guidelines for National Greenhouse Gas Inventories
Direct Carbon Emissions Coefficient kg(CO2)/kg(energy)
Coal
Coke
Crude oil
Gasoline
Kerosene
Diesel
Fuel oil
Natural gas
2.055
3.043
3.065
2.985
3.088
3.161
3.2 37
1.996

7. 2 Method and data The direct carbon emission of an industry:
the emission factor
the consumption of different types of energy of an industry
Collect the output data of selected industries from World Input- Output Table from WIOD
With the carbon emission and output data, get the direct carbon emission coefficient, reflecting the emission per unit output

8. 2 Methodology and data Complete Emission Coefficient
get the following equation from the IO model:
(1)
(2)
(3)
the output of an economy
the direct consuming coefficient matrix
the direct carbon emission coefficient
the complete consuming coefficient matrix
the complete emission coefficient

9. 2 Methodology and data Data:
consumption of various types of energy: China Energy Statistical Yearbook
input-output data: WIOD
trade data: UNComtrade
Observation Duration:

10. Methodology and data 2
Addressing industry classification differences across divergent datasets
China Energy Statistical Yearbook before and after 2011: make adjustments to get a unique classification
Input-Output table - China Energy Statistical Yearbook: make adjustments
The classification got above - SITC Rev.3: correspondence by Sheng Bin (2002)

11. 2 Methodology and data The results are not unique
Adopt the decomposition by Erick Dietzenbacher and Bart Los (1998)
The change of the emissions can be represented as:
or:

12. 2 Methodology and data The 4 effects:
direct carbon emission technique effect
input-output technique effect
scale effect
composition effect

13. Results 3
Analyze the embodied CO2 emissions in export of 17 manufacturing industries
Divide the change into 4 parts (SDA methods)
To report the results clearer, take 6 industries for example

14. Fig1 The Embodied CO2 Emission (2000-2014)
Results 3
Fig1 The Embodied CO2 Emission ( )

15. Fig2 The Direct Carbon Emission Technique Effect
Results 3
Fig2 The Direct Carbon Emission Technique Effect

16. The Impact of Policy on Direct Carbon Emission Technique Effect Unit: Mt
Industries
2007
2011
Manufacture of Electrical Machinery and Apparatus
Manufacture of Textile, Wearing, Leather and Related Products
Manufacture of Computers, Communication and Other Electronic Equipment
Manufacture of Basic Metal
Manufacture of Furniture and other Manufacture
Other Manufacture of Machinery
Manufacture of Raw Chemical Materials and Chemical Products
Manufacture of Metal Products
Manufacture of Transport Equipment
Manufacture of Rubber and Plastics Products
Manufacture of Non-metallic Mineral Products
Manufacture of Foods, Beverages and Tobacco
Processing of Petroleum, Coking and Processing of Nuclear Fuel
Manufacture of Paper and Paper Products
Processing of Timber, Manufacture of Wood, Bamboo, Rattan, Palm, and Straw Products
Manufacture of Medicines
Printing and Reproduction of Recording Media

17. Fig3 The Input-Output Technique Effect
Results 3
Fig3 The Input-Output Technique Effect

18. The Impact of Policy on Input-Output Technique Effect Unit:Mt
Industries
The impact in 2006
Manufacture of Computers, Communication and Other Electronic Equipment
Manufacture of Textile, Wearing, Leather and Related Products
Manufacture of machinery and equipment n.e.c.
Manufacture of Electrical Machinery and Apparatus
Manufacture of Transport Equipment
Manufacture of Furniture and other Manufacture
Manufacture of Metal Products
Manufacture of Non-metallic Mineral Products
Manufacture of Rubber and Plastics Products
Manufacture of Basic Metal
Manufacture of Raw Chemical Materials and Chemical Products
Manufacture of Foods, Beverages and Tobacco
Manufacture of Paper and Paper Products
Processing of Timber, Manufacture of Wood, Bamboo, Rattan, Palm, and Straw Products
Manufacture of Medicines
Printing and Reproduction of Recording Media
Processing of Petroleum, Coking and Processing of Nuclear Fuel

19. Results 3
Fig4 The Scale Effect

20. Results 3
No common tendency in composition effect across industries: the proportion of some industries increased, while that of others decreased
Obtain total composition effect across 17 manufacturing industries to find the influences

21. Fig5 The Composition Effect
Results 3
Fig5 The Composition Effect

22. complete emission coefficient(kg/$US)
Industries
complete emission coefficient(kg/$US)
composition in 2008
composition in 2009
Manufacture of Foods,Beverages and Tobacco
2.20%
2.48%
Manufacture of Computers, Communication and Other Electronic Equipment
20.24%
22.04%
Manufacture of Furniture and other Manufacture
13.54%
14.00%
Manufacture of Medicines
0.58%
0.73%
Processing of Timber,Manufacture of Wood,Bamboo,Rattan,Palm,and Straw Products
0.57%
Manufacture of Textile,Wearing,Leather and Related Products
16.43%
17.67%
Printing and Reproduction of Recording Media
0.21%
0.23%
Manufacture of Transport Equipment
4.92%
4.99%
Manufacture of Paper and Paper Products
0.53%
0.62%
Processing of Petroleum, Coking and Processing of Nuclear Fuel
1.53%
1.17%
Other Manufacture of Machinery
8.49%
8.27%
Manufacture of Rubber and Plastics Products
2.28%
2.44%
Manufacture of Electrical Machinery and Apparatus
11.49%
11.96%
Manufacture of Non-metallic Mineral Products
1.72%
1.85%
Manufacture of Metal Products
4.05%
3.74%
Manufacture of Basic Metal
6.43%
3.02%
Manufacture of Raw Chemical Materials and Chemical Products
4.79%
4.23%

23. Results 3
The financial crisis at the end of 2008 and its impact reflected clearly in 2009
The export composition was improved in 2009, and the emissions was reduced by the effect
To make more comprehensive, sum the proportion of 9 industries with lower complete emission effect in 2009, find
it increased from 59.21% to 63.33%
while the proportion of the other 8 industries with higher coefficients declined from 40.79% to 36.67%

24. Conclusions 4
Decomposing the change of trade embodied CO2 emissions in into 4 parts, conclude:
The 11th five-year plan made firms to employ low-carbon input to reduce the emissions
The 12th five-year plan forced firms to reduce emissions by using more cleaner energy and upgrading techniques
Firms with low technique were forced to exit the market
However, the impacts of policies were different across industries
Although financial crisis did do harm to the economy, it seemed to have reduced the emissions by improving export composition

25. Thank You!