A network analysis of indirect carbon emission flows among different industries in China

Indirect carbon emissions account for a large ratio of the total carbon emissions in processes to make the final products, and this implies indirect carbon emission flow across industries. Understanding these flows is crucial for allocating a carbon allowance for each industry. By combining input-output analysis and complex network theory, this study establishes an indirect carbon emission flow network (ICEFN) for 41 industries from 2005 to 2014 to investigate the interrelationships among different industries. The results show that the ICEFN was consistent with a small-world nature based on an analysis of the average path lengths and the clustering coefficients. Moreover, key industries in the ICEFN were identified using complex network theory on the basis of degree centrality and betweenness centrality. Furthermore, the 41 industries of the ICEFN were divided into four industrial subgroups that are related closely to one another. Finally, possible policy implications were provided based on the knowledge of the structure of the ICEFN and its trend.