A Study On The Resource-Environment-Economy Relationship Of Hunan Province Based On Input-Output Analysis And Product Life Cycle Assessment

The accounting of environment pollution, as an integral part of the green national economy accounting, is a comprehensive accounting of environment and economy. In this respect, to truly reflect economy growth, environmental cost must be added to national economy accounting system. In the 21st century, China faces an increasing problem with resource shortage and environmental deterioration. The country needs to concern resource and environment aspects while purchasing economic prosperity. Therefore, the application of the comprehensive accounting of environment and economy becomes even more urgent.The present study analyzes the interactive relationship between resource consumption and environment pollution in the economic process, from an integrative perspective combining resource, environment and economy. At the macroscopic level, the resource, environment and economy relationship in Hunan Province was analyzed via relevant input-output theories; at the microscopic level, the methodology of product life cycle assessment was adopted. Detailed contents of the present study are listed below:(1) Traditional input-output theories have been innovated by examining the limitations of previous input-output theories on the assumption of sustainable development. Specifically, the "input" section was enlarged by adding resource and environment factors; meanwhile the "department" section was expanded by adding "departments" of resource restoring & application and pollution treatment. Consequently, an input-output table was obtained on the relationship between resource, environment and economy.(2) On the basis of recent annual input-output tables of Hunan Province, an updated input-output table on the resource-environment-economy relationship of Hunan Province has been established. This table was drafted by adding resource and environment values (such as values of resource usage & restoration, pollution emission and treatment), editing, reorganizing and converting the statistic data. The data were obtained from the up-dated statistic data or converting calculation, which included values such as pollutant rate, treatment rate, treatment price, restoration price, restoration cost (material cost and labor cost), treatment cost (material cost and labor cost).(3) An input-output model on the resource-environment-economy relationship of Hunan Province has been established based on an analysis of the relationship between economic structures, resource consumption and pollution emission, especially the situation of pollution emission of different industrial departments. On the basis of direct consumption and complete consumption relationship between resources and departments, two approaches have been proposed towards the goals of maintaining economy growth and reducing resource consumption: one aims to adjust industrial structures and the other aims to replace input factors. These approaches were also evaluated through calculating recent ten-year's input-output data of the six departments of Hunan Province.(4) The environment pollution of the provincial industry has been evaluated and accounting tables on the material value and the price value of industrial pollution in Hunan Province have been depicted. Besides, according to the 2006 provincial statistic data, we calculated the material cost and the price cost of water pollution, air pollution and solid waste. The entire industrial pollution cost calculation demonstrated the environmental cost of the economic development.(5) With the methodology of product life cycle assessment, the environmental impact of industrial products has been analyzed, with the case study of engines. The product life cycle assessment of engines shows that the worst air pollution stage comes from firstly the raw material production stage and then the engine usage stage.(6)With a comparison between the manufacture and remanufacture of engines, the present study claims that the remanufacture not only bears enormous economic benefits, but also brings huge environmental benefits. It is vital to choose the right product for remanufacture, which will greatly influence enterprises' development. Despite various complicated and co-dependent factors during the choice process, the Analytic Network Processes (ANP) will assist in solving these complex decision-making problems.