Assessing embodied carbon emission and its drivers in China's ICT sector: Multi-regional input-output and structural decomposition analysis

With the rapid development of the digital economy in China, the Information and Communication Technology (ICT) sector has become increasingly crucial for the country's economic growth and carbon dioxide (CO2) emissions. Thus, we adopt the environmentally expanded multi-regional input-output (MRIO) model to assess embodied CO2 emissions in China's ICT sector. Also, this paper investigates embodied CO2 emissions flow paths by employing the structural path analysis (SPA) approach. In addition, this study uses the multi-regional structural decomposition analysis (SDA) technique to explore further the factors that influence embodied CO2 emissions. The results indicate that embodied CO2 emissions in China's ICT sector are 410.70 Mt and 436.58 Mt between 2012 and 2015 and that emissions caused by exports are the main contributors to embodied CO2 emissions. Moreover, embodied CO2 emissions in most provinces are concentrated on relatively simple paths that do not involve more complex industrial chain transfer processes. Despite considerable regional heterogeneity, the critical driving force responsible for inhibiting embodied CO2 emissions in China's ICT sector from 2012 to 2015 is carbon intensity, while domestic final demand remains China's primary obstacle to the environmental sustainability. More detailed discussions and policy implications are provided.