ANALYSIS OF LOW-CARBON PRODUCTION CHAINS TOWARDS CHINA'S CO2 EMISSION REDUCTION TARGETS FOR 2020

Achieving China's carbon reduction targets for 2020 necessitates the consideration of integrated production chains (PCs) given that competition between sectors has been transformed into competition between PCs. This paper establishes an extended input–output (IO) model that calculates the cost multiplier transmission effect of emission reduction in low-carbon production chains (LCPCs). Empirical results show that in relation to PCs, the electricity power industry and urban residents are the key policy points in adjusting China's industrial structure. This paper suggests that policymakers consider the cost multiplier transmission effect imposed by upstream sectors to downstream industries.