China’s carbon emissions structure and reduction potential on the supply-side and demand-side of energy: Under the background of four influencing factors

Abstract

In recent years, the issues related to carbon emissions and environment have attracted extensive attentions. Considering four scenarios (the energy conversion, energy capital savings and loans, energy exports and cement production carbon emissions), this paper adopts the energy consumption method and input-output method to analyze China’s carbon emissions structure on the supply-side and demand-side of energy, and finally provides policy recommendations for China’s structural emission reduction. The results show that, if the four influencing factors were not considered, the measurement of carbon emissions from the final demand was 44.91% higher than the baseline scenario, 12.36% lower than the baseline scenario from intermediate demand, and 10.23% lower than the baseline scenario from the total. For China’s carbon emissions structure on the supply-side of energy, the carbon emissions from high-carbon energy, represented by raw coal, accounted for 66.805% of the total energy-related carbon emissions, while the carbon emissions from low-carbon energy, represented by natural gas, only accounted for 2.485%. For China’s carbon emissions structure on the demand-side of energy, the carbon emissions from intermediate demand (enterprise production) accounted for more than 95% of total energy-related carbon emissions, while the carbon emissions from final demand (residents and government use) accounted for less than 5%. For each specific industry in intermediate demand for energy, the heavy industry, electric power, fossil energy, and chemical industry have high carbon emissions and low carbon emissions efficiency. However, the agriculture, construction, light industry, and service are the opposite. Finally, we provide policy recommendations for improving the accuracy of carbon emissions measurement and carbon emissions efficiency.

The effect of digital financial inclusion on the green economy: the case of Egypt

“…As discussed earlier, financing technological investments promotes green technological innovations which significantly limits fossil fuel energy consumption and reduces CE. The results came in line with previous literature (Wan et al ., 2021; Elheddad et al ., 2021; Li et al ., 2021).…”

“…In other words, higher DFI using Internet banking and other digital payment gateways decreases the demand for fossil fuel energy and thus limits CO 2 . Another possible explanation is that inclusive digital financial services have a superior advantage over traditional bank-based financial services as it promotes easy access to green credit and can provide more funds for green technologies initiatives aimed at improving the green economy (Love, 2003; Zhao et al ., 2021; Wan et al ., 2021). As discussed earlier, financing technological investments promotes green technological innovations which significantly limits fossil fuel energy consumption and reduces CE.…”

“…Similarly, high DFI can change the overall industrial structure in a more environmentally friendly direction since digital financial services rely on the user's behavior as the primary data to assess the user's credibility and make credit decisions. Thus, the service sector that relies heavily on information technologies is more likely to benefit from digital finance, and by directing more funds to this sector, its development will significantly impact carbon emission reduction (Li et al ., 2021; Wan et al ., 2021). Finally, inclusive digital finance induces consumer engagement in environmental protection activities since it raises consumers' awareness about the importance of going green by eliminating paperwork and encouraging people to move toward cashless societies by using online digital payment gateways (Zhao et al ., 2021).…”

“…Renzhi and Baek (2020) and Salman and Hosny (2021) discuss the impact of reducing carbon emissions and achieving sustainable economic growth as the most critical challenges faced by countries worldwide. Other scholars expect that DFI is expected to limit carbon emissions where more funds are provided for green technology initiatives that significantly limit fossil fuel energy consumption and reduce carbon emissions (Love, 2003; Lin et al ., 2017; Wan et al ., 2021). Therefore, DFI, economic development and climate change policies can be coordinated to create a synergy.…”

“…Furthermore, only a few studies discuss the impact of DFI on environmental degradation. Thus, the literature on how financial inclusion impacts the environment is still in its infancy, and the research regarding the impact of DFI on the environment is still blank and thus currently is receiving extensive attention from researchers (Wan et al ., 2021).…”