Embodied Carbon in China's Export Trade: A Multi Region Input-Output Analysis

Labor market distortion and air pollution: An empirical analysis based on spatial effect modeling

In China, along with the rapid development of economy, air pollution has become a hot issue of public concern, particularly in many cities. The distortion in the labor factor market can cause air pollution, but the underlying mechanism is not yet clear. To investigate this question, this article examines the effect of labor market distortion on air pollution focusing on SO₂ emissions based on data of China's 283 cities during 2003-2015. The main objectives are to examine the direct and spillover effects of labor market distortion on air pollution using panel fixed-effects models, including the spatial Durbin model and the mediated-effects model. Results show that labor market distortion directly aggravates air pollution in cities. Mechanism analysis suggests that labor market distortion incurs air pollution through mechanisms of suppressing technological progress, hindering the upgrading of industrial structure, and reducing the efficiency of energy use. Divided the cities by their locations into those in eastern, central, and western regions, we find that such unfavorable effects are more prominent in eastern and western regions of the country. These findings highlight the impetus of mitigating the distorted labor market to ameliorate air quality and promote sustainable development.

How does environmental regulation influence green technological innovation? Moderating effect of green finance

The main factor behind green economic development is green technology innovation (GTI). Environmental regulation and green finance (GF), as important ways to promote ecological civilization construction, run through the entire procedure of GTI. The purpose of this study is to investigate the influence of heterogeneous environmental regulation on GTI and the moderating effect of GF on GTI from both theoretical and empirical perspectives, to provide useful ideas for China's economic reform path selection and environmental governance system optimization. This paper uses information from 30 provinces between 2002 and 2019, and a bidirectional fixed model was constructed. The results show that: First, regulatory environmental regulation (ER₁), legal environmental regulation (ER₂), and economic environmental regulation (ER₃) all have greatly boosted the degree of GTI in each province. Second, GF acts as a highly effective moderator between heterogeneous environmental regulation and GTI. Finally, this article investigates how GF can act as a moderator in various circumstances. The beneficial moderating effect of it is found to be more pronounced in inland areas, areas with weak spending on research and development, and areas with high energy consumption. These research results provide valuable references for accelerating the green development process in China.

Digital economy and industrial energy efficiency performance: evidence from the city of the Yangtze River Delta in China

Industry dominates energy consumption and carbon emissions in China, and industrial energy efficiency is critical for the achievement of energy transformation and carbon emission reduction. With the rapid development of the digital economy, its impact on energy efficiency is gradually emerging, and it is necessary to clarify the influencing mechanism on industrial energy efficiency. Based on the panel data of industrial sectors in 41 cities in the Yangtze River Delta from 2011 to 2019, the main objectives of this study are to more accurately measure the industrial total factor energy efficiency in each city by using the Super-Dynamic-SBM model. It analyses the influence mechanism of the digital economy and other influencing factors on industrial total factor energy efficiency with different methods. The research results indicate that, first, the total factor energy efficiency of the industrial sector in the Yangtze River Delta urban agglomeration generally showed a steady upward trend. Second, the digital economy and environmental regulation play a significant role in promoting total factor energy efficiency. In addition, industrial energy efficiency and the digital economy show an inverted "U" shaped relationship. With the improvement of the digital economy, its marginal contribution to total factor energy efficiency gradually weakens. Finally, technological progress is an important transmission channel for the impact of the digital economy on total factor energy efficiency.

The impact of heterogeneous environmental regulation on high-quality economic development in China: based on the moderating effect of digital finance

Under the new normal of economic growth, implementing environmental regulation policies and developing digital finance have become essential factors affecting high-quality economic development. This study aims to examine whether environmental regulation has a positive effect on high-quality economic development and what impact digital finance has in the process of environmental regulation affecting high-quality economic development. This study uses the panel data of 30 provinces in China from 2011 to 2019 to measure the high-quality economic development by using the entropy-TOPSIS method based on constructing an indicator system for high-quality economic development. Then, environmental regulations are classified into four categories: economic, command based, legal, and supervised, and digital finance is included in the analysis framework. The impact of heterogeneous environmental regulations on high-quality economic development and the indirect influence mechanism played by digital finance are empirically analyzed. The results show that command-based environmental regulation significantly hinders improving economic development quality. In contrast, supervised environmental regulation plays a significant positive role and can therefore serve as an essential driver of high-quality economic development. In addition, digital finance plays a significant positive moderating role in the influence of environmental regulation on the economy's high-quality development level. After the robustness test, the conclusion is still valid. Further heterogeneity analysis shows that the impact of environmental regulation on high-quality economic development and the moderating effect of digital finance differ across dimensions of economic quality development and have regional heterogeneity. The research findings are conducive to formulating appropriate environmental regulation policies and giving full play to the positive role of digital finance, providing support for promoting high-quality economic development.

Identification of Key Carbon Emission Industries and Emission Reduction Control Based on Complex Network of Embodied Carbon Emission Transfers: The Case of Hei-Ji-Liao, China

Similar to the problems surrounding carbon transfers that exist in international trade, there are severe carbon emission headaches in regional industrial systems within countries. It is essential for emission reduction control and regional industrial restructuring to clarify the relationship of carbon emissions flows between industrial sectors and identify key carbon-emitting industrial sectors. Supported by the input-output model (I-O model) and social network analysis (SNA), this research adopts input-output tables (2017), energy balance sheets (2021) and the energy statistics yearbooks (2021) of the three Chinese provinces of Hei-Ji-Liao to construct an Embodied carbon emission transfer network (ECETN) and determine key carbon-emitting industrial sectors with a series of complex network measurement indicators and analysis methods. The key abatement control pathways are obtained based on the flow relationships between the chains in the industrial system. The results demonstrate that the ECETNs in all three provinces of Hei-Ji-Liao are small-world in nature with scale-free characteristics (varying according to the power function). The key carbon emission industry sectors in the three provinces are identified through centrality, influence, aggregation and diffusion, comprising coal mining, the chemical industry, metal products industry, machinery manufacturing and transportation in Liaoning Province; coal mining, non-metal mining, non-metal products, metal processing and the electricity industry in Jilin Province; and agriculture, metal processing and machinery manufacturing in Heilongjiang. Additionally, key emission reduction control pathways in the three provinces are also identified based on embodied carbon emission flow relationships between industry sectors. Following the above findings, corresponding policy recommendations are proposed to tackle the responsibility of carbon reduction among industrial sectors in the province. Moreover, these findings provide some theoretical support and policy considerations for policymakers.

Identifying greenhouse gas emission reduction potentials through large-scale photovoltaic-driven seawater desalination

To widely promote freshwater production through seawater desalination, renewable energy is expected to replace traditional fossil energy to drive seawater desalination. Based on the input list of components and materials, this study attempts to quantify greenhouse gas (GHG) emissions of photovoltaic-driven seawater desalination projects through replacing traditional thermal power plants and evaluate GHG emission reduction potentials by comparing the thermal- and photovoltaic-driven seawater desalination projects. The GHG emission of photovoltaic-driven seawater desalination project could be reduced by 94.97 % compared with the thermal-driven seawater desalination project, and the GHG emission per unit water production is reduced by 9.8 kg CO₂-eq/ton, which could greatly reduce GHG emissions in the whole life cycle. In addition, it is estimated that the large-scale implementation of photovoltaic power stations in LT-MED seawater desalination project can reduce GHG emissions from 1.61E+05 to 3.86E+06 t CO₂-eq per year. Through the payback period assessment, the combination of photovoltaic power stations and thermal power plants to drive the seawater desalination project can offset the GHG emission of 7.94E+03 t CO₂-eq, and the payback period of photovoltaic-driven seawater desalination project is estimated to be 0.33 years. Using renewable energy instead of traditional thermal energy can reduce the fossil fuel combustion and GHG emissions during the water desalination process, which provides essential references for the low-carbon transition and energy saving in seawater desalination projects in China's coastal areas.

Environmental regulation, foreign investment, and green innovation: a case study from China

Green innovation (GI) has the dual attributes of green development and being innovation driven, and it has become an inevitable choice for solving the prisoner's dilemma of environmental protection and economic development under the action of the concept of sustainable development in the new era. This paper aims to clarify how environmental regulation (ER) can achieve a win‒win situation of GI and environmental protection by using data from prefecture-level cities in China and creating a dynamic panel model, quantile model, spatial econometric model, and panel threshold model to empirically analyze the dynamic effect and spatial effect of ER on GI as well as the nonlinear characteristics of the relationship between them and to examine the moderating effect of foreign direct investment (FDI). The results show that ER significantly promotes the development of the GI level and that FDI can play a positive moderating role. The impact has regional heterogeneity, time period heterogeneity, and resource endowment heterogeneity. After several robustness tests, the empirical conclusions are still credible. Based on the empirical conclusions, this paper makes policy suggestions on ER, foreign investment introduction, and the coordinated development of regional GI.

How do environmental protection expenditure and green technology innovation affect synergistically the financial performance of heavy polluting enterprises? Evidence from China

In recent years, economic growth has caused an increasing number of environmental problems in China. In order to achieve the goal of carbon peak on schedule, enterprises need to accelerate green transformation and upgrading. Environmental protection expenditure and green technology innovation are important means of corporate environmental governance strategy, but it is unknown whether they can promote the sustainable development of enterprises. Therefore, this article will analyze the effect of enterprise environmental protection expenditure and green technology innovation on financial performance. Based on relevant theories, this study builds a theoretical model to demonstrate how enterprise environmental protection expenditure and green technology innovation can affect the financial performance of heavy polluting enterprises. Empirical tests are carried out using 293 heavy polluting enterprises in China as the sample. The results reveal that: (i) Enterprise environmental protection expenditure has significant negative effects on current enterprise financial performance, while green technology innovation can significantly promote enterprise financial performance. (ii) When the lag period is two periods, the enterprise environmental protection expenditure and green technology innovation have positive effects on enterprise financial performance respectively, and the effects are the most significant. (iii) Enterprise environmental protection expenditure and green technology innovation synergistically promote enterprise financial performance in the current period, and the impact has a lag effect. (iv) In state-owned enterprises and enterprises with higher corporate governance level, the synergetic promotion effect of environmental protection expenditure and green technology innovation on enterprise financial performance is more significant. Finally, this study provides suggestions for promoting the transformation and upgrading of heavy polluting enterprises and achieving sustainable development from the perspectives of the government, enterprises and the public.

Analysis of the interprovincial embodied carbon flow network of China's exports

We calculate the embodied carbon emissions of China's through the multiregional input-output (MRIO) method, then we construct the interprovincial embodied carbon flow networks of China's exports based on the mean threshold, and the application of complex network analysis to conduct a detailed examination of the overall characteristics, key nodes and edges, and community structure of China's interprovincial embodied carbon flow network. We extended the embodied carbon flow network analysis at the provincial level. The results demonstrated the following: (1) The interprovincial embodied carbon flow network of China's exports has small-world and scale-free characteristics. The node degree probability distribution curves for the networks obviously conformed to a decreasing power law distribution, indicating that a few industrial sectors carry a large amount of embodied carbon and suggesting that reducing the embodied carbon of China's exports could yield twice the results with half the effort as long as attention is paid to a few sectors. (2) The key nodes and edges in the networks show that industrial sectors and production chains such as the power and heat production and supply industry, the petroleum processing, coking, and nuclear fuel processing industry, and the metal smelting and calendering industry play the role of key "bridges" in the entire network, among which Guangdong, Hebei, Jiangsu, Inner Mongolia, and Shanxi are important node provinces and the main flow paths for the generation of embodied carbon in national exports. These industrial sectors and production chains should bolster their policies to encourage the innovation of carbon emission reduction technologies and decrease carbon emissions, so as to reduce the embodied carbon of national exports on a large scale. (3) The number of communities firstly increased then decreased from 2007 to 2017, while the aggregation coefficient of the node and correlation density within first community displayed firstly downward then upward trends, reflecting firstly decentralization then centralization of the interprovincial embodied carbon flow.

Spatial-Temporal Evolution Analysis of Carbon Emissions Embodied in Inter-Provincial Trade in China

Under the support of Multi-Regional Input–Output (MRIO) analysis, this study constructs the Embodied Carbon Emission Transfer Network (ECETN) using the input–output tables of 42 sectors in 31 provinces of China in 2012, 2015, and 2017 and applies a series of complex network measurement indicators and analysis methods to describe its evolution features. The results show that the embodied carbon emission transfers between provinces generally narrow over time. With its high clustering coefficient and short average path length, ECETN has small-world characteristics and behaves sensitively, and changes in individual provinces can quickly spread and affect the entire system. In addition, the clustering effect and the spatial spillover structural properties of ECETN are explored based on the block model analysis. Finally, Quadratic Assignment Procedure (QAP) is used to analyze and quantify the contribution of provincial structural roles to ECETN, and it is found that spatial adjacency and differences in strength-in, strength-out, and betweenness centrality have significant positive effects, while differences in eigenvector centrality, clustering coefficient have significant negative effects. The restructuring of domestic trade can help achieve national emission reduction. These findings can provide more insights for the government to formulate future development directions and policies to reduce emissions further.