Comparison of Carbon Hotspots of India and China: An Analysis of Upstream and Downstream Supply Chains
The present study enables the analysis of carbon hotspots responsible for CO2 emissions in India and China. The hotspot approach indicates the contribution of the various sectors to direct emissions of CO2 and carbon footprints with a focus only on single pollutant, CO2. The direct emissions considered in this study refer to the CO2 emissions generated by a sector to meet its own final demand and demand from all other sectors of the economy, while footprints pertain to the total volume of CO2 emissions embodied in the upstream supply chain of a sector (Katris 2015). Using the direct and embodied CO2 emissions, a hotspot is identified as a point on a sector’s supply chain (either upstream or downstream) that represents emissions above some standard level. The analysis uses the World Input–Output Database (Timmer et al. 2015) for data on India and China. For the purpose of analysis, only initial and final years, i.e. 1995 and 2009 of this database, have been considered. However, the study further extends the hotspot analysis of Indian economy for the year 2011 by using OECD Intercountry Input–Output Database (OECD 2015). The analysis allows us to identify the sectors that deserve more consideration for mitigation for the success of CO2 emission reduction strategy.
KeywordsCO2 emissions Input–output analysis Carbon footprint Direct emissions
JEL CodeE1 O11 O25 P5 Q4 R11
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