An input-output structural decomposition analysis of changes in China's renewable energy consumption

Area of Science:

• Environmental Science
• Energy Economics
• Applied Economics

Background:

• Governments promote renewable energy to combat climate change and reduce carbon emissions.
• Identifying key drivers of renewable energy utilization is essential for effective policy.
• China's energy transition requires understanding factors influencing renewable energy adoption.

Purpose of the Study:

• To analyze the driving factors of renewable energy changes in China's production, household, and aggregate economy.
• To identify critical sectors for achieving China's energy transition goals.
• To provide insights for government policies promoting renewable energy.

Main Methods:

• Utilized China's 2010-2016 input-output table.
• Applied input-output model and structural decomposition analysis (SDA).
• Analyzed drivers at production, household, and aggregate economic levels.

Main Results:

• Changes in consumption structure (F) were the most significant driver of renewable energy use.
• Technology progress (T) and final demand per capita (V) were also key factors.
• Sectors SEHW and MCRP are vital for production-level energy transition, while household renewable energy proportion declined.

Conclusions:

• Consumption structure changes are paramount for increasing renewable energy utilization.
• Targeting specific sectors like SEHW and MCRP is crucial for production-level green transition.
• Policies are needed to encourage renewable energy adoption at the household level to reverse declining trends.