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Structural path analysis of China’s coal consumption using input–output frameworks

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Abstract

In-depth study of the key sectors and supply chain paths driving coal consumption in China is valuable for effectively formulating coal reduction and replacement policies to achieve sustainable development. This study conducted a structural path analysis, based on the latest publicly available input–output tables and energy use data provided by the World Input–Output Database, to trace China’s coal consumption transmission throughout its entire supply chain. The results indicate that investment, exports, and household consumption are important factors in coal consumption. “Electricity, Gas and Water Supply” is a critical sector for, largely indirect, coal consumption. The path of “Electricity, Gas and Water Supply→ intermediate sectors→ Construction→ Investment” accounts for the bulk of coal consumption in China. The node path analysis shows that the 2-node transmission paths, starting from Construction and ending with “Other Non-Metallic Mineral” and “Basic Metals and Fabricated Metal” are important sources of coal consumption induced by investment demand. The 1-node path of “Basic Metals and Fabricated Metal” is an important path for coal consumption induced by export demand. The 1-node path of “Electricity, Gas and Water Supply” is an important path for coal consumption caused by household consumption demand. In order to effectively implement coal reduction and replacement policies, China should control coal consumption in these key sectors and channels and optimize intermediate input and energy use structures.

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Funding

The authors are grateful for financial support from the National Natural Science Foundation of China (NSFC) (Grant No. 71673083) and the National Social Science Fund of China (Grant No. 18AJL008).

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Authors and Affiliations

  1. School of Economics and Management, Changsha University of Science & Technology, Changsha, 410000, Hunan, China

    Ligao Yang & Lulu Li

  2. Research Institution for Global Value Chains, University of International Business and Economic, Beijing, 100029, China

    Kunfu Zhu

  3. School of Economics and Trade, Hunan University, Changsha, 410006, Hunan, China

    Rui Xie & Zhenguo Wang

Authors
  1. Ligao Yang
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  2. Lulu Li
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  3. Kunfu Zhu
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  4. Rui Xie
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  5. Zhenguo Wang
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Corresponding author

Correspondence to Rui Xie.

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Highlights

• A structural path analysis is used to identify key coal consumption sectors in China.

• Investment, exports, and household consumption account for most coal consumption.

• We identify 1-, 2-, and 3-node paths that are responsible for high coal consumption.

• The Energy, Gas, and Water Supply sector produces the most coal demand.

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Yang, L., Li, L., Zhu, K. et al. Structural path analysis of China’s coal consumption using input–output frameworks. Environ Sci Pollut Res 27, 6796–6812 (2020). https://doi.org/10.1007/s11356-019-07176-6

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  • DOI: https://doi.org/10.1007/s11356-019-07176-6

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