A sector-disaggregated cross-regional emission analysis for carbon mitigation policies from production and consumption perspectives

As one of the most challenging environment issues worldwide, climate change has posed a serious threat to habitat, species, and people's livelihoods. In this study, a sector-disaggregated cross-regional emission analysis model is developed to systematically analyze enviro-economic effects of sector-level carbon mitigation efforts from both production and consumption perspectives for supporting climate change-related policymaking. A special case study of Hubei Province, China, is conducted to demonstrate the potential benefits of its use in the climate change related policymaking field. The power generation sector has been disaggregated into five subsectors based on different power generation technologies to help investigate the potential of such technologies to carbon emission mitigations. The carbon mitigation policy scenarios from both industry optimization and demand substitute perspectives will further be explored to provide bases for decision makers to formulate the desired carbon mitigation policy aimed at different regions and sectors. Results indicate that dominant direct and indirect CO₂ emissions in Hubei Province are from the Production and supply of fossil-fuel power sector and Construction sector, respectively. When industry optimization policies on the fossil-fuel power sector (in Hubei), there are significant effects on the CO₂ emission mitigation whichever regions. Therefore, industry optimization policies are suggested for implementation in specific sectors with close intersectoral/interprovince trade contacts and significant emissions to achieve joint carbon emission mitigations.