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The Coal, Petroleum, and Gas Embedded in the Sectoral Demand-and-Supply Chain: Evidence from China

Muhammad Jawad Sajid (), Zhang Yu () and Syed Abdul Rehman ()
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Muhammad Jawad Sajid: School of Engineering Management, Xuzhou University of Technology, Xuzhou 221006, China
Zhang Yu: School of Economics and Management, Chang’an University, Xi’an 710064, China
Syed Abdul Rehman: Department of Business Administration, ILMA University, Karachi 75190, Pakistan

Sustainability, 2022, vol. 14, issue 3, 1-18

Abstract: The United Nations’ Sustainable Development Goal (SDG) number seven expressly calls for universal access to affordable and sustainable energy. Energy sustainability will require a reduction in energy consumption, including embedded energy consumption in sectoral demand and supply chains. However, few studies have estimated the amount of coal, petroleum, and gas (fossil fuel) embedded in demand-and-supply chains (FFEDS). Furthermore, the inter-and intra-sectoral energy linkages are understudied. This study quantifies China’s FFEDS, the world’s largest energy consumer. According to the findings, the highest levels of coal, natural gas, and petroleum consumption (CNGPC) are embedded in the construction sector’s input demand. “Electricity and steam production and supply” total intermediate exports (internal plus inter-sectoral) stimulated the highest coal consumption. “Crude petroleum products and natural gas products” and “railway freight transport” aggregate supplies induced the highest volume of natural gas and petroleum consumption. Compared to intra-sectoral demand, inter-sectoral demand stimulated significantly larger CNGPCs. In contrast, CNGPC’s inter- and inter-sectoral supplies were nearly identical. Modifying current carbon taxation and credit mechanisms to include energy embedded in demand and supply can help to achieve SDG 7.

Keywords: fossil fuel; Ghosh supply (price) model; industrial linkage; input-output model; Leontief demand (inverse) model; sustainability; United Nations sustainable development goals (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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