Optimization of Energy Consumption Right Quotas through the Consideration of Responsibility Transfer Among Industrial Sectors

YANG Shunshun

Abstract The historical method and benchmarking method ignore the responsibility transfer among industrial sectors which result from embodied energy consumption. The author established a quotas optimization model considering the responsibility transfer among industrial sectors based on input-output analysis and consumer responsibility, and conducted case studies taking 2025 as the target year. The results show that under “historical and benchmarking method”, the tasks of energy conservation and emission reduction will be mainly undertaken by sectors of energy supply raw and material production with weak energy intensity reduction targets in the future. The quota optimization process considering the responsibility transfer among industrial sectors is divided into two stages: historical quota compensation and trend quota correction. The author designed a scenario of weak stable development which considered the impact of COVID-19. After quota optimization which is carried out with direct and total industrial energy consumption as the core indicators, the responsibility for energy conservation and emission reduction are extended from the sectors of energy supply and raw material production to the discrete manufacturing sector. The main beneficiary sectors are textile sector, papermaking and printing sector, manufacture of wood and furniture. Due to the quota flow relationship among various sectors, the energy sector, mining and quarrying, foods, textile, papermaking, petrochemical, metal smelting sectors, manufacture of electrical machinery can preferentially access to the energy consumption right quotas trading market. This work provides suggestions for the operation of China’s energy consumption rights trading market. Key words energy consumption right; quota optimization; responsibility transfer; input-output analysis