Critical contributors and transmission paths of energy consumption in China's supply chains network

Abstract

Clarifying the critical contributors to energy consumption and understanding the formation mechanisms along supply chain network are essential for advancing sustainable development. In this study, we employ a multi-regional input-output model to profile province-sectors from production-, betweenness-, and consumption-based perspectives to identify the key hotspots driving energy consumption in China in 2017. The hypothetical extraction method is then applied to quantify the impact of critical sectors on total energy use of other provincial sectors. Finally, we identify the most critical supply chain paths contributing to these key sectors through top-down, betweenness-based, and bottom-up structural path analysis techniques. Results show that chemical industry in Shandong and Jiangsu and metallurgy in Hebei are the most significant energy consumption hotspots from a betweenness-based perspective. The basic material sectors (e.g. chemicals, metal, and non-metal) and transport and storage are the most important energy consumption sources, while construction stands as the principal final consumer, collectively forming major energy transfer paths. For the supply chain paths of key transmission hubs, the upstream sectors are often centered within the hubs themselves, highlighting the necessity of simplifying the complexity of supply chains in these sectors. We recommend integrated energy management strategies that incorporate targeted measures for critical sectors and supply chain paths, addressing energy challenges from production-based, betweenness-based, and consumption-based perspectives.