LAUSR

Energy-related CO2 emissions in China have been extensively investigated. However, the mechanisms of how energy-related emissions are driven by inter-sectoral linkages remains unexplored. In this paper, a subsystem input-output model was developed to investigate the temporal and sectoral changes of emissions in China from 1997 to 2012. We decomposed total emissions into internal, spillover, feedback, and direct components. Our results show that the equipment manufacturing, construction and services sectors are the main sources of emissions during the whole period, which have a larger spillover component, primarily through indirect upstream emissions in the heavy-manufacturing, transportation, and power sectors. The emissions from the power and transportation sectors are dominated by direct rather than the spillover emissions. The shares of the feedback and internal components in the heavy manufacturing sectors were significantly higher than those of other sectors. Our results suggest that further addressing carbon emissions along the supply chain of equipment manufacturing, construction and services sectors, and improving technologies in the heavy manufacturing and power sectors holds important future opportunities for curbing the rapid growth of carbon emissions in China.