China's provincial CO₂ emissions and interprovincial transfer caused by investment demand

Based on the China's 1997, 2002, 2007, and 2012 multiregional input-output model, this study calculates China's provincial CO₂ emissions from investment demand and interprovincial transfer of CO₂ emissions caused by investment demand. The findings of this study are as follows: (1) From 1997 to 2012, the CO₂ emissions from China's investment demand have seen rapid growth-the CO₂ emissions from investment demand has increased by 4.52 times, and the per capita CO₂ emissions caused by investment demand has increased by 4.13 times. Investment demand is an important driver of growth of China's CO₂ emissions. The proportion of CO₂ emissions from investment demand in CO₂ emissions from China's three final demands rose from 37.72% in 1997 to 50.68% in 2012. (2) The CO₂ emissions from investment demand are relatively large in provinces which have large-scale industries. Affected by investment-driven economic growth, CO₂ emissions from investment demand in central, western, and northeastern provinces have increased more rapidly. (3) Large amounts of CO₂ are emitted in the less-developed central and western provinces to meet the investment demand of the developed eastern provinces. As China's economy enters the "new normal," economic growth is shifting from investment-driven to consumption-driven, and the growth of CO₂ emissions from investment demand will slow down.