Sectoral carbon linkages of Indian economy based on hypothetical extraction model

Abstract

Purpose Presentation of the different industrial carbon linkages of India. The purpose of this paper is to understand the direct and indirect impact of these industrial linkages. Design/methodology/approach This study uses a hypothetical extraction method with its various extensions. Under this method, different carbon linkages of a block are removed from the economy, and the effects of carbon linkages are determined by the difference between the original and the post-removal values. Energy and non-energy carbon linkages are also estimated. Findings “Electricity, gas and water supply (EGW)” at 655.61 Mt and 648.74 Mt had the highest total and forward linkages. “manufacturing and recycling” at 231.48 Mt had the highest backward linkage. High carbon-intensive blocks of “EGW” plus “mining and quarrying” were net emitters, while others were net absorbers. “Fuel and chemicals” at 0.08 Mt had almost neutral status. Hard coal was the main source of direct and indirect emissions. Practical implications Net emitting and key net forward blocks should reduce direct emission intensities. India should use its huge geographical potential for industrial accessibility to cheaper alternative energy. This alongside with technology/process improvements catalyzed by policy tools can help in mitigation efforts. Next, key net-backward blocks such as construction through intermediate purchases significantly stimulate emissions from other blocks. Tailored mitigation policies are needed in this regard. Originality/value By developing an understanding of India’s industrial carbon links, this study can guide policymakers. In addition, the paper lays out the framework for estimating energy and non-energy-based industrial carbon links.

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

“…Inter-sectoral imports from the construction sector also stimulated the highest levels of coal (17.86 EJ), natural gas (0.67 EJ), and petroleum (2.81 EJ) consumption in the upstream sectors. Other studies have discovered that the construction sector's demand has the greatest influence on inter-sectoral and inter-regional environmental impacts, including the consumption of upstream suppliers' inter-sectoral carbon [44] and inter-regional air pollutants [42]. The construction sector, in particular, has the highest absolute total backward energy linkage in China [54].…”

“…The dismantling of cross-sectoral environmental ties enables us to ascertain the primary sources and destinations of a country's environmental (carbon) impacts [40,44]. The construction sector's demand was the primary source of fossil fuel consumption at other upstream sectors.…”

“…However, China's energy consumption increased by 2.2% in 2020, the COVID-19-affected year [4]. Sectoral connections can provide insight into the origins and destinations of environmental impacts associated with intermediate sectoral trade [35,44]. Cross-sectoral energy policies can aid in the adoption of more environmentally friendly manufacturing processes [53].…”

“…Sajid et al [43] established sectoral backward links between CO 2 emissions and final demand in China. Sajid et al [44] quantified the carbon links between India's energy and non-energy sectors. Deng et al [45] examined the linkages between China's water, energy, and food supply chains.…”

Labor linkages and flow paths of industry in China

“…It should propose the creation of a unified labor market as the main solution for ensuring stable employment. Third, the government should strengthen the flexibility of the transfer of labor population demand in various industries, support employers docking training and be included in the employee reserve plan [ [60] , [61] , [62] ]. Fourth, the government should establish a labor population market policy conducive to the matching of supply and demand and reduce the pressure of unemployment in the community.…”