Carbon emissions from the service sector: an input-output application to Beijing, China

Beijing is a large city and a major consumer of energy and producer of carbon emissions. According to Beijing's 12th Five-Year Plan, the local government will continue to both promote the service sector and seek reductions in carbon emissions. We developed an input-output subsystem assessment to study carbon emissions associated with the service sector. Based on the subsystem of service productive activity, the analysis decomposes carbon emissions into 5 components (demand volume component, own component, feedback component, spillover component, and intra-sector spillover component) to construct a detailed direct and indirect emissions path. We found that the transportation, storage, mail and telecommunications subsector accounts for a high level of direct emissions, as shown by the demand volume component and the own component. In this subsector, financial support and policies focus on the promotion of new-energy vehicles (e.g. electric vehicles) and renewable energy for transportation (e.g. fuel ethanol) to reduce emissions. Furthermore, the scientific studies and technical services subsector, the hotels and restaurants subsector, and the health care, social security and social welfare subsector contribute greatly to indirect emissions. However, these service activities are widely seen as low-carbon emitters and are neglected by regulations aimed at reducing emissions. With respect to these subsectors, financial support should be provided and guidelines established to improve energy efficiency and prevent carbon emissions from spilling over from the service to the non-service sector.