Clustering economic sectors in China on a life cycle basis to achieve environmental sustainability

Abstract

To improve material efficiency, industrial structure optimization becomes a focal point in Chinese industrial and environmental policies. It is crucial to cluster economic sectors and determine their priority for industrial and environmental policy implementation. Integrating a set of criteria, a hybrid input-output model and the hierarchical cluster analysis, this study clusters China’s economic sectors and determines their priority on a life cycle basis. China’s economic sectors are clustered into three clusters. Industrial structure changes (industrial policy) should encourage the development of sectors in cluster 1 and limit the development of sectors in cluster 2. Technology development and materials recycling (two environmental policies) should mainly focus on sectors in clusters 1 and 2. Future industrial policies in China should limit the development of two sectors named Manufacture of metal products and Extraction of petroleum and natural gas. Instead of limiting some industries by command-and-control, the best policy option is to remedy environmental standards and law enforcement. Enterprises belonging to the identified key sectors from the viewpoint of direct production impacts should be concerned to achieve enterprise sustainability. To achieve sustainable production chains, the identified key sectors from the viewpoint of accumulative production impacts should be concerned. For sustainable consumption, the identified key sectors from the viewpoint of consumption impacts should be concerned to transform consumption styles. Most of environmental pressure can be alleviated not only by technical improvements and material recycling, but also by the development of economic sectors in cluster 1.

Keywords

cluster analysis / input-output model / life cycle / material flow analysis / sustainable development

References

[1] Xu M, Zhang T Z. Material flows and economic growth in developing China. Journal of Industrial Ecology, 2007, 11(1): 121-140

[2] Wang N. Present and Future Situations of China’s Material Metabolism. Dissertation for the B.A.’s Degree. Beijing: Tsinghua University, 2009 (in Chinese)

[3] National Bureau of Statistics of China. China Statistical Yearbook 2009. Beijing: China Statistics Press, 2009 (in Chinese)

[4] Enerdata. Yearbook-Statistical Energy Review 2010. Enerdata: Grenoble, 2010

[5] Chen X, Qiao L. A preliminary material input analyses of China. Population and Environment, 2001, 23(1): 117-126

[6] Xu M, Zhang T. Material input analysis of China economic system. China Environmental Science, 2005, 25(3): 324-328 (in Chinese)

[7] Chen B, Chen G Q, Yang Z F, Jiang M M. Ecological footprint accounting for energy and resource in China. Energy Policy, 2007, 35(3): 1599-1609

[8] Xu M, Zhang T, Allenby B. How much will China weigh? Perspectives from consumption structure and technology development. Environmental Science & Technology, 2008, 42(11): 4022-4028

[9] Duan N, Li Y P, Sun Q H, Shen P, Mao Y R. An analysis for trends of material flow in China’s economy system and for reasons causing the trends. China Environmental Science, 2008, 28(1): 68-72 (in Chinese)

[10] Peters G P, Weber C L, Guan D, Hubacek K. China’s growing CO₂ emissions—a race between increasing consumption and efficiency gains. Environmental Science & Technology, 2007, 41(17): 5939-5944

[11] Zhang M, Mu H, Ning Y. Accounting for energy-related CO₂ emission in China, 1991–2006. Energy Policy, 2009, 37(3): 767-773

[12] Zhang M, Mu H L, Ning Y D, Song Y C. Decomposition of energy-related CO₂ emission over 1991–2006 in China. Ecological Economics, 2009, 68(7): 2122-2128

[13] Zhang X P, Cheng X M. Energy consumption, carbon emissions, and economic growth in China. Ecological Economics, 2009, 68(10): 2706-2712

[14] Zhang Y. Structural decomposition analysis of sources of decarbonizing economic development in China: 1992–2006. Ecological Economics, 2009, 68(8-9): 2399-2405

[15] Zhao X L, Ma C B, Hong D Y. Why did China’s energy intensity increase during 1998–2006: Decomposition and policy analysis. Energy Policy, 2010, 38(3): 1379-1388

[16] Li Y, Hewitt C N. The effect of trade between China and the UK on national and global carbon dioxide emissions. Energy Policy, 2008, 36(6): 1907-1914

[17] Lin B Q, Sun C W. Evaluating carbon dioxide emissions in international trade of China. Energy Policy, 2010, 38(1): 613-621

[18] Liu X, Ishikawa M, Wang C, Dong Y, Liu W. Analyses of CO₂ emissions embodied in Japan-China trade. Energy Policy, 2010, 38(3): 1510-1518

[19] Xu M, Allenby B, Chen W. Energy and air emissions embodied in China-U.S. trade: eastbound assessment using adjusted bilateral trade data. Environmental Science & Technology, 2009, 43(9): 3378-3384

[20] Xu M, Williams E, Allenby B. Assessing environmental impacts embodied in manufacturing and labor input for the China-U.S. trade. Environmental Science & Technology, 2010, 44(2): 567-573

[21] Yan Y, Yang L. China’s foreign trade and climate change: a case study of CO₂ emissions. Energy Policy, 2010, 38(1): 350-356

[22] Liu H, Xi Y, Guo J, Li X. Energy embodied in the international trade of China: an energy input-output analysis. Energy Policy, 2010, 38(8): 3957-3964

[23] Li H, Zhang P D, He C Y, Wang G. Evaluating the effects of embodied energy in international trade on ecological footprint in China. Ecological Economics, 2007, 62(1): 136-148

[24] Luo S, Wang C, Chen J. Analysis of embodied energy in China’s international trade. Journal of Tsinghua University (Science and Technology), 2010, 50(3): 477-480 (in Chinese)

[25] Xu M, Allenby B, Chen W Q. Energy and air emissions embodied in China-U.S. trade: eastbound assessment using adjusted bilateral trade data. Environmental Science & Technology, 2009, 43(9): 3378-3384

[26] Liang S, Zhang T. Interactions of energy technology development and new energy exploitation with water technology development in China. Energy, 2011, 36(12): 6960-6966

[27] Chen X, Tiyip T, Lu G H. The analysis of material flow index at Xinjiang, China. In: Proceedings of the SPIE-The International Society for Optical Engineering, San Diego. Bellingham: SPIE-Int SOC Optical Engineering, 2006, 629825-1-8

[28] Xu M, Jia X P, Shi L, Zhang T Z. Societal metabolism in North-east China: case study of Liaoning Province. Resources, Conservation and Recycling, 2008, 52(8-9): 1082-1086

[29] Zhang Z X, Yu C X, Deng L, Deng N S. Material flow and environmental impact analysis of fossil fuels in the province of Hubei, China. Fresenius environmental bulletin, 2007, 16(9B): 1207-1215

[30] Liang S, Zhang T. What is driving CO₂ emissions in a typical manufacturing center of South China? The case of Jiangsu Province. Energy Policy, 2011, 39(11): 7078-7083

[31] Liang S, Wang C, Zhang T Z. An improved input-output model for energy analysis: a case study of Suzhou. Ecological Economics, 2010, 69(9): 1805-1813

[32] Liang S, Zhang T. Managing urban energy system: a case of Suzhou in China. Energy Policy, 2011, 39(5): 2910-2918

[33] Liang S, Zhang T. Urban metabolism in China: achieving dematerialization and decarbonization in Suzhou. Journal of Industrial Ecology, 2011, 15(3): 420-434

[34] Liang S, Zhang T. Data acquisition for applying physical input-output tables in Chinese cities: the case of Suzhou. Journal of Industrial Ecology, 2011, 15(6): 825-835

[35] Liang S, Zhang T. Comparing urban solid waste recycling from the viewpoint of urban metabolism based on physical input-output model: a case of Suzhou in China. Waste Management, 2012, 32(1): 220-225

[36] Liang S, Shi L, Zhang T. Achieving dewaterization in industrial parks: a case study of the Yixing Economic Development Zone. Journal of Industrial Ecology, 2011, 15(4): 597-613

[37] Cao S Y, Xie G D, Zhen L. Total embodied energy requirements and its decomposition in China’s agricultural sector. Ecological Economics, 2010, 69(7): 1396-1404

[38] Cai W J, Wang C, Chen J N. Revisiting CO₂ mitigation potential and costs in China’s electricity sector. Energy Policy, 2010, 38(8): 4209-4213

[39] He J K, Deng J, Su M S. CO₂ emission from China’s energy sector and strategy for its control. Energy, 2010, 35(11): 4494-4498

[40] Lu W, Zhang T Z. Life-cycle implications of using crop residues for various energy demands in China. Environmental Science & Technology, 2010, 44(10): 4026-4032

[41] Ou X M, Yan X Y, Zhang X L. Life-cycle energy consumption and greenhouse gas emissions for electricity generation and supply in China. Applied Energy, 2011, 88(1): 289-297

[42] Wu J, Wan H, Chen W, Shi L. Quantifying energy consumption and greenhouse gas emissions of the primary aluminum industry in China. Journal of Tsinghua University (Science and Technology), 2010, 50(3): 407-410 (in Chinese)

[43] Guo Z C, Fu Z X. Current situation of energy consumption and measures taken for energy saving in the iron and steel industry in China. Energy, 2010, 35(11): 4356-4360

[44] Price L, Sinton J, Worrell E, Phylipsen D, Xiulian H, Ji L. Energy use and carbon dioxide emissions from steel production in China. Energy, 2002, 27(5): 429-446

[45] Wei Y M, Liao H, Fan Y. An empirical analysis of energy efficiency in China’s iron and steel sector. Energy, 2007, 32(12): 2262-2270

[46] Lei Y, Zhang Q A, Nielsen C, He K B. An inventory of primary air pollutants and CO₂ emissions from cement production in China, 1990–2020. Atmospheric Environment, 2011, 45(1): 147-154

[47] Zhou W J, Zhu B, Li Q A, Ma T J, Hu S Y, Griffy-Brown C. CO₂ emissions and mitigation potential in China’s ammonia industry. Energy Policy, 2010, 38(7): 3701-3709

[48] Zhu B, Zhou W J, Hu S Y, Li Q A, Griffy-Brown C, Jin Y. CO₂ emissions and reduction potential in China’s chemical industry. Energy, 2010, 35(12): 4663-4670

[49] Chang Y A, Ries R J, Wang Y W. The embodied energy and environmental emissions of construction projects in China: an economic input-output LCA model. Energy Policy, 2010, 38(11): 6597-6603

[50] Zhang S, Yang X, Jiang Y, Wei Q. Comparative analysis of energy use in China building sector: current status, existing problems and solutions. Frontiers of Energy and Power Engineering in China, 2010, 4(1): 2-21

[51] Hu X J, Chang S Y, Li J J, Qin Y N. Energy for sustainable road transportation in China: challenges, initiatives and policy implications. Energy, 2010, 35(11): 4289-4301

[52] United States Environmental Protection Agency. Sustainable Materials Management: the Road Ahead. Washington: United States Environmental Protection Agency, 2009

[53] Foran B, Lenzen M, Dey C, Bilek M. Integrating sustainable chain management with triple bottom line accounting. Ecological Economics, 2005, 52(2): 143-157

[54] United Nations General Assembly. 2005 World Summit Outcome, Resolution A/60/1, adopted by the General Assembly on 24th October 2005. New York:United Nations, 2005

[55] Hawkins T, Hendrickson C, Higgins C, Matthews H S, Suh S. A mixed-unit input-output model for environmental life-cycle assessment and material flow analysis. Environmental Science & Technology, 2007, 41(3): 1024-1031

[56] Suh S. Functions, commodities and environmental impacts in an ecological-economic model. Ecological Economics, 2004, 48(4): 451-467

[57] Weisz H, Duchin F. Physical and monetary input-output analysis: What makes the difference? Ecological Economics, 2006, 57(3): 534-541

[58] Miller R E, Blair P D. Input-Output Analysis: Foundations and Extensions. 2nd ed. Cambridge: Cambridge University Press, 2009

[59] Deza E, Deza M M. Encyclopedia of Distances. Berlin: Springer, 2009

[60] Department of Energy Statistics, National Bureau of Statistics, Department of General Affairs, National Energy Administration, of China. China Energy Statistical Yearbook 2008. Beijing: China Statistics Press, 2008 (in Chinese)

[61] Ministry of Environmental Protection of China. 2007 Annual Statistic Report on Environment in China. Beijing: China Environmental Science Press, 2008 (in Chinese)

[62] National Bureau of Statistics, Ministry of Environmental Protection of China. China Statistical Yearbook on Environment 2009. Beijing: China Statistics Press, 2009 (in Chinese)

[63] Ministry of Environmental Protection, National Bureau of Statistics, Ministry of Agriculture of China. Reports on the First Nationwide Survey of Polluters. Beijing: National Bureau of Statistics of China, 2010 (in Chinese)

[64] Ministry of Environmental Protection of China. China Environment Yearbook 2009. Beijing: China Environment Yearbook Press, 2010 (in Chinese)

[65] Lu W. Waste recycling system material metabolism analysis model and its application. Dissertation for the Doctoral Degree. Beijing: Tsinghua University, 2010 (in Chinese)

[66] Intergovernmental Panel on Climate Change. 2006 IPCC Guidelines for National Greenhouse Gas Inventories. Hayama: Institute for Global Environmental Strategies, 2006

[67] Tian H. Studies on present and future emissions of nitrogen oxides and its comprehensive control policies in China. Dissertation for the Doctoral Degree. Beijing: Tsinghua University, 2003 (in Chinese)

[68] State Environmental Protection Administration of China. Cleaner Production Standard- Basic Chemical Raw Material Industry (Ethylene Oxide and Ethylene Glycol) HJ/T190-2006. Beijing: State Environmental Protection Administration of China, 2006 (in Chinese)

Acknowledgements

The authors thank the financial support for the National Technology Support Project of China (Grant No. 2009BAC64B01), the National Natural Science Foundation of China (Grant Nos. 41101570 and 21136003), Beijing Natural Science Foundation (Grant No. 8112026) and Shanghai Tongji Gao Tingyao Environmental Science & Technology Development Foundation (STGEF).

RIGHTS & PERMISSIONS

2014 Higher Education Press and Springer-Verlag Berlin Heidelberg