A Hypothetical Extraction Method Decomposition of Intersectoral and Interprovincial CO 2 Emission Linkages of China’s Construction Industry

Adedayo Johnson Ogungbile, Geoffrey Qiping Shen, Jin Xue and Tobi Michael Alabi
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Adedayo Johnson Ogungbile: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong
Geoffrey Qiping Shen: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong
Jin Xue: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hong Kong
Tobi Michael Alabi: Renewable Energy Research Group (RERG), Department of Building Environment and Energy Engineering, The Hong Kong Polytechnic University, Hong Kong

Sustainability, 2021, vol. 13, issue 24, 1-31

Abstract: Understanding the complex CO 2 emissions in inter-sectoral and interregional interactions of the construction industry is significant to attaining sustainability in China. Many previous studies focused on aggregating the construction sector’s CO 2 emissions on a national level, with the provincial characteristics and interactions often overlooked. Using extended environmental input–output tables, we adopted a hypothetical extraction method combined with extended-environmental multi-regional input–output tables for 2012, 2015, and 2017 data to decompose the CO 2 emissions linkages in 30 provincial construction sectors. The provincial carbon emissions data from a complete system boundary informed the recategorization of China’s construction sector as a high-carbon-intensity industry. The interprovincial interactions results show relatively small backward CO 2 emissions linkages compared to forward CO 2 emissions linkages depicting the industry’s significant role in China’s economic growth and an essential target in CO 2 emissions reduction plans. The provinces exhibited different impacts on the directional push–pull, with less developed provinces having one-way directional effects. The more developed provincial sectors behaved more like demand-driven industries creating an overall imbalance in CO 2 emissions interaction between the sectors in interregional emission trades. We identified construction sectors in Gansu, Xingjian, Ningxia, and Inner Mongolia as the most critical, with more significant CO 2 emissions interactions than other provinces. Improving the technical level in less developed provincial construction sectors, considering provincial characteristics in policy formulation, and a swift shift to renewable energy as a primary energy source would aid in reducing the emissions intensities in the construction sector, especially in the less developed provinces, and achieving China’s quest to reach a CO 2 emissions peak by 2030.

Keywords: CO 2 emissions; provincial construction sector; embodied carbon; hypothetical extraction method; CO 2 interactions; multi-regional input–output analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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