Analyzing Carbon Emissions Embodied in Construction Services: A Dynamic Hybrid Input–Output Model with Structural Decomposition Analysis

Abstract

The energy embodied in construction services consumed by industrial sectors used to increase capacities has led to massive energy-related carbon emissions (ERCE). From the perspective of consumer responsibility, ERCE embodied in construction services is driven by technological changes and the increases in final demand of various sectors, including final consumption, fixed assets investment, and net export. However, little attention has been paid to decomposing sectoral responsibilities from this perspective. To fill this research gap, we propose a dynamic hybrid input–output model combined with structural decomposition analysis (DHI/O-SDA model). We introduce DHI/O modeling into the estimation of ERCE embodied in construction services from the perspective of consumer responsibility and introduce SDA into DHI/O models to improve the resolution of the estimate. Taking China as a case study, we verified the DHI/O-SDA model and present the bilateral relationships among sectoral responsibilities for ERCE embodied in construction services. A major finding is that the “Other Tertiary Industry” sector is most responsible for ERCE embodied in construction services and strongly influences other sectors. Therefore, controlling the final demand increase of the service industry will be the most effective policy to reduce the ERCE embodied in construction services.