An Input-output Model to Analyze Sector Linkages and CO2 Emissions

An Input-output Model to Analyze Sector Linkages and CO2 Emissions

Available online at www.sciencedirect.com Procedia Environmental Sciences 2 (2010) 1841–1845 International Society for Environmental Information Sci...

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Available online at www.sciencedirect.com

Procedia Environmental Sciences 2 (2010) 1841–1845

International Society for Environmental Information Sciences 2010 Annual Conference (ISEIS)

An Input-output Model to Analyze Sector Linkages and CO2 Emissions Ju Lipinga, Chen Binb, * a

State Key Laboratory of Water Environment Simulation and Pollution Control, School of Environment, Beijing Normal University, Beijing, China, 100875 d State Key Laboratory of Turbulence and Complex Systems, Peking University, Beijing 100871, China

Abstract International negotiations of reducing CO2 emissions address the question of how to account annual CO2 emissions of each sector of one city. The aim of this study is to establish the CO2 inventories focused on the supply chain emissions of CO2 emissions form each sector, e.g. agriculture, industry, transportation and tertiary industry. And to categorize upstream emission sources to identify the significant sectors that contribute the most to climate change. Moreover, IO-LCA method is chosen to evaluate the upstream carbon footprint and carbon dioxide emissions intensity of 28 economic sectors of Chongqing from 2002 to 2007. CO2 emissions the top-3 of which includes Transportation Equipment, Smelting and Pressing of Metals, Electricity, Steam Production and Supply, and CO2 emissions density the top-3 of which includes Coal Mining and Dressing, Nonmetal Minerals Mining and Dressing, Petroleum, Coking and Nuclear Fuel Processing.

© 2010 Published by Elsevier Ltd. Keyworsd: input-output models, CO2 emissions, CO2 emission density, Chongqing;

1. Introduction To avoid the huge risk of climate change, cultural and technology factors affect a city’s CO2 emissions the world should reduce greenhouse gas (GHG) emissions. But different economic, social, behavioral, it is necessary to analyze the internal production factors causing CO2 emissions in an economy. In Kyoto, December 1997, an international agreement has been reached on reducing global CO2 emissions to the atmosphere. From then on, the countries, policy makers, enterprises, even consumers are interested in cutting back the contributions of their own activities of CO2 emissions [1]. International negotiations of reducing CO2 emissions address the question of how to meet commitments with more explicit engagement with sub-national action. So a shift to sub-national climate governances has emerged in the last few years, resulting in many campaigns such as the “Cities for Climate Protection” [2] and “Pilot projects for low carbon city” in China. Measuring the carbon footprint or GHG emissions and preparing the footprint inventories from each sector in one city is the basis of sub-national action about climate mitigation. Carbon footprint, which is rooted in the literature of ecological footprint [3], has many definitions that differ in which gases are accounted for, where boundaries of analysis are drawn and other criteria [4]. Also, the existing protocols vary in scope. Currently, many protocols, such as World Resources Institute [5], Local Government Operation Protocol [6], just aim at direct emissions and emissions from the generation of purchased electricity, with less focus on indirect emissions upstream in the supply chain [7]. Excepting a few sectors with large greenhouse gas like power generation, transportation and cement manufacturing, CO2 emissions from direct emissions and purchased energy use only occupy a small portion of the total carbon footprint [3]. Previous study have estimated that, on average, tier 1 emissions from an industry are only 14% of the total upstream supply chain carbon emissions, and the sum of emissions from tier1 and tier 2, only 26% [3]. So, bigger scopes or tiers of carbon footprint are expected from the perspective of life cycle accounting [8]. Better informing and estimating of carbon

* Corresponding author. Tel.:+0-010-5880-7368; fax:.+0-010-5880-7368 E-mail address: [email protected]

1878-0296 © 2010 Published by Elsevier doi:10.1016/j.proenv.2010.10.195

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footprint of the whole supply chain process can help decision makers and consumers to approve the low carbon and energy-efficient goods without being lulled by the carbon underestimations of existing protocols. To track all activities across the supply chain for a special industry and assess the carbon embodied in a product, the Life Cycle Assessment (LCA) was introduced. Currently, the two types of LCA, process-based and economic input-output (IO) approaches are conventional. Process-based LCA models are more precise but time-consuming considering the difficulty of obtaining detailed inventory data, while IO models are efficient and eliminate cutoff errors while introducing errors and uncertainties related to prices [7]. Economic input-output models were first proposed by Leontief in 1936[9] to aid in manufacturing planning. Recently, input-output life cycle assessment (IO-LCA) methods were broadly applied in the accounting of CO2 and GHG emissions [10, 11, 12, 13, 14]. Matthews, et al.[3] assessed the variety scopes of carbon footprint in 3 tiers, including direct emissions, emissions from purchased energy and supply chain emissions, in two case studies, book publishers and power generation. Results showed that direct emissions from an industry are, on average, only 14% of the total supply chain carbon emissions and direct emissions plus industry energy inputs are only 26%. Larsen and Hertwich [15] (2009) developing a greenhouse gas emissions inventory related to the provision of municipal services in the city of Trondheim. The analysis shows that approximately 93% of the total carbon footprint of municipal services is indirect emissions. The aim of this study is to establish the CO2 inventories focused on the supply chain emissions of CO2 emissions form each sector, e.g. agriculture, industry, transportation and tertiary industry. And to categorize upstream emission sources to identify the significant sectors that contribute the most to climate change. Moreover, IO-LCA method is chosen to evaluate the upstream carbon footprint and carbon dioxide emissions intensity of 28 economic sectors of Chongqing from 2002 to 2007. 2. Methods The accounting models used for estimating all purchases and activities in a supply chain leading to final manufacture in an industry by any sector in the Chongqing economy based on the economic IO-LCA. The models are consistent with the data structure described in Section 3. An input-output model is used to account the direct and indirect emissions of each sector, that is embodied carbon and the model is shown in Eq.(1), analysis the embodied CO2 emissions of the consumption of primary energy based on produce from the total supply chain up to the production gate, and the CO2 emissions from industrial process also as known as cradle-to-gate emissions -1 (1) E=F ˜ Ed I-A Y '

Where E is the 1×28matrix, 28 vector specifying CO2 emissions from 28 production sectors. E specifying use of 3 energy types per unit for 28 production sectors, including coal, oil and natural gas.

d'

is the 3×28 matrix

3. Data The EIO-LCA is developed based on the Chongqing input and output tables for the year 2002 from 2002 Input-output table in China [16]. The tables encompass 42 sectors. Due to the lack of similar input-output tables for the year 2003-2007 for assessing environmental impacts of sectors, as is often done in input-output analyses we assume that Leontief inverse coefficient ,that is -1 I-A for the year 2003-2007 is identical to the baseline year 2002. Energy-flow matrixes for the years 2002-2007 from Chongqing Statistical Year book 2003-2008. And the final consumption of energy is specified in 4 types of energy, including coal, oil natural gas and electricity. CO2 emission factors of primary energy are based on the carbon content of the fuels and the type of energy, which are included in IPCC [17]. CO2 emissions factors of electricity are based on coal factors that are corrected by standard coal consumption of power supply(366 g/KW·h, the average value in China[18], and the rate of thermal power plant(71.5%, the average value in Chongqing [19],CO2 emissions factors for renewable energy are considered to be zero. So the CO2 emissions factors are as shown in Table 1. Table 1 The CO2 emissions of factors of energy [20] NO. Energy CO2 coefficients

emission

1 Coal ˄KgCO2/GJ˅

2 Oil˄ KgCO2/GJ˅

3

4

Natural gas ˄KgCO2/GJ˅

Electricity ˄KgCO2/kwh˅

90.90

72.93

51.19

0.6963

The economic input-output tables encompass 42 sectors, and energy-flow containing energy consumption for 40 sectors. However, to attain the consistency between economic input-output tables and energy-flow matrix, new classification principles have been used for data of the years 2002-2007. For the years data are supplied into 28 sectors.

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Table 2 Sectors Classification NO. Sector NO. 1 Farming, Forestry, Animal Husbandry and 15 Fishery 2 Coal Mining and Dressing 16 3 Petroleum and Natural Gas Extraction 17 4 Metals Minerals Mining and Dressing 18

Sector

5

Nonmetal Minerals Mining and Dressing

19

6

Food Production and Tobacco Processing

20

7 8

21 22 23

Gas Production and Supply

24

Water Production and Supply

25

Construction

12

Textile Industry Garmenta, Leather Furs Down and Related Products Timber Processing and Furniture Manufacturing Paper making, Printing and Cultural Educational and Sports Goods Petroleum, Coking and Nuclear Fuel Processing Chemical Industry

Metal Products Ordinary and Special Equipment Transportation Equipment Electric Equipment and Machinery Communication Equipment, Computers and Other Electronic Equipment Instruments, Meters, Cultural and Office Machinery Other Manufcturing Industry Electricity, Steam Production and Supply

26

13 14

Nonmetal Mineral Products Smelting and Pressing of Metals

27 28

Transportation, Storage,Postal and Telecommunication Services Wholesale, Retail Sale Trade and Catering Trade Others

9 10 11

In the study, considering no CO2 emissions from the consumption of electricity and heating, the principle of actual energy consumption [11] is used. The principle considers where energy is actually used, that is, energy inputs for the production of electricity and district heating are estimated as the final consumption of energy production. 4. Results

ten thousand t CO2

Based on Chongqing 2002 data, we estimate the accounting models for 28 economic sectors. As seen in Fig.1 and Fig.2 , CO2 emissions of sector 17, 14, 12, which on behave of Transportation Equipment, Smelting and Pressing of Metals, Electricity, Steam Production and Supply, are 5.4822E+03, 4.1426E+03, 2.9634E+03 ten thousand t, respectively, and CO2 emission intensity of sector 2, 5, 11, on behave of Coal Mining and Dressing, Nonmetal Minerals Mining and Dressing, Petroleum, Coking and Nuclear Fuel Processing, are 2.1007E+01, 1.5656E+01, 1.4420E+01 ten thousand t/hundred million yuan.

6.0000E+03 5.0000E+03 4.0000E+03 3.0000E+03 2.0000E+03 1.0000E+03 0.0000E+00 1

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2007

Fig.1 Carbon emissions of 28 sectors in 2007

Ju Liping and Chen Bin / Procedia Environmental Sciences 2 (2010) 1841–1845

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Fig.2 Carbon emissions density of 28 sectors in 2007 The top-3 sectors of CO2 emissions and CO2 emission density in 2007 are analyzed detailedly from 2002 to 2007, as seen in Fir.3 and Fig 4, respectively. The CO2 emissions of sector 17, 14 ,33, all increased, but the CO2 emission density gradually decreased.

ten thousand t CO2

6.0000E+03 5.0000E+03 4.0000E+03

sector 17

3.0000E+03

sector 14

2.0000E+03

sector 22

1.0000E+03 0.0000E+00 2002

2003

2004

2005

2006

2007

ten thousand t CO2

Fig.3 Carbon emissions of sector17, 14, 22 from 2002-2007 5.00E+01

sector 2

4.00E+01

sector 5 sector 11

3.00E+01 2.00E+01 1.00E+01 0.00E+00 2002

2003

2004

2005

2006

2007

Fig.4 Carbon emissions of sector 2, 5, 11 from 2002-2007 5. Conclusions This paper proposes a methodology combining input-output tables to identify the systemic sources of CO2 emissions within production structure and the carbon footprint inventory will help determine the most important focus sectors. The study shows the key sectors in the structure of total Chongqing from two perspectives, CO2 emissions the top-3 of which includes Transportation Equipment, Smelting and Pressing of Metals, Electricity, Steam Production and Supply, and CO2 emissions density the top-3 of which includes Coal Mining and Dressing, Nonmetal Minerals Mining and Dressing, Petroleum, Coking and Nuclear Fuel Processing. So effective public policies technological changes should be made to tackle the CO2 emissions and CO2 emissions density. Acknowledgements This study was supported by the Program for New Century Excellent Talents in University (NCET-09-0226), National High Technology Research and Development Program of China (No., 2009AA06A419), Key Program of National Natural Science Foundation (No., 50939001), National Natural Science Foundation of China (Nos., 40701023, 40901269, 40871056), National Key Technologies R&D Program (No., 2007BAC28B03), State Key Basic Research and Development Plan of China (973 Plan, No., 2005CB-724204), and Program for Changjiang Scholars and Innovative Research Team in University(No., IRT0809).

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