Inter-industrial Carbon Emission Transfers in China: Economic Effect and Optimization Strategy

- China's inter-industrial carbon emission transfers are measured between 2002 and 2010.
- The economic effects of inter-industrial carbon emission transfers are assessed.
- Four strategies are proposed to optimize carbon emission transfer in different industries.

Understanding inter-industrial carbon emission transfers and their economic effect informs approaches to achieve emission reduction objectives and promote industrial economic development. This paper applies input-output theory to explore ways to optimize carbon emission transfers between industrial sectors. First, China's inter-industrial carbon emission imports and exports were measured for years 2002, 2005, 2007, and 2010. Next, the economic effects of inter-industrial carbon emission transfers were assessed. Finally, strategies to optimize the carbon emission transfer structure were proposed, with the goal of achieving a win-win between industrial carbon emission reduction and economic development. Key study conclusions are as follows. (1) Inter-industrial carbon emission imports and exports in China are significant, and are increasing each year. Traditional energy industries have high carbon emission imports; processing and manufacturing industries have high carbon emission exports; and most light industries have relatively low levels of both carbon emission imports and exports. (2) Carbon emission transfer imports or exports can promote industrial development; combining both imports and exports leads to variable economic effects within specific industries. (3) To achieve the dual goals of carbon emission reduction and economic development, four strategies are proposed to optimize carbon emission transfer structures in different industries.