Chinas’ temporal emissions from final demand of domestic and imported goods.

Abstract

Final demand is the main culprit for a country’s emissions. In order to curb a country’s emissions it’s essential to develop a deep understanding of final demand and its categories. In this study we have decomposed Chinas’ emissions from final demand of domestic and imported goods in to relevant categories of Household, Government and Capital. We have also argued, to correctly understand final emissions distinction should be made between emissions from intermediate, final and total imported emissions moreover proposed possible accounting treatments for all three. Production and consumption-based emissions from final demand are on rise since 2002 onwards while emissions from final-imports have actually decreased over the years. Capital formation with 39% is the major final demand category for domestic goods. While household with 52% is for final imports. The gap between total and final import emissions has increased resulted from growing demand of intermediate imports and decreased demand of finished (final) imports. Production-based emissions are always greater than consumption-based with an ever increasing split between the two. This further decomposition will be helpful to further understand Chinas’ final emissions which can help managers and policy makers to effectively and efficiently design carbon mitigation policies.