The Study Of Material And Pollutant Production In Chinese Service Industry

Since the reform and opening policy, Service industry in China has gone through a steady and rapid development:the proportion of the service sector in 1978 was 22%, 41% in 2001, surpass the proportion of industry for the first time, reached 46% in 2012 and the proportion in 2015 first accounted more than half of the economy for 50.5%. Service Industry plays an irreplaceable role in promoting China’s economic development, labor employment and so on. In the "twelfth five-year" plan, the service sector will be the main direction of China’s economic restructuring and development.For the special nature of intangibility, simultaneity of production and consumption in Services, Some scholars thinks of the service industry an environment-friendly industries. But a growing number of scholars have pointed out the fact that countries where services is much more developed tend to emit more carbon dioxide. So, whether China’s service industry is pollutant? The nature of pollutant in Service Industry lies in its production material? If our service industry is really not-environment-friendly industries, what are the factors affect the service industry’s pollution?In 1978-2014, the industrial added value in service increased by 340 times to 30.581 trillion yuan. In 1995-2009, the output level, the number of employees and capital investment in service industry respectively increased by 711%,53% and 812%, while energy consumption, power consumption and carbon dioxide emissions increased by about 212%,366% and 118%, unit labor energy intensity and carbon intensity shows a downward trend. In 2009, the energy consumption structure in service industry is about 82.09% of fossil energy and 17.83% of electric energy.To analyze material and pollutant production in Chinese service industry, this paper adopted an environmentally extended Input-output subsystem analysis to calculate and analysis the total carbon dioxide emissions of service subsystem in 1995-2009, which lead two conclusions:first, the direct carbon dioxide emissions in 15 years is about 10372.80 million tons,2 times of emissions amount in 2009; second,74.99% of total carbon dioxide emissions in 15 years is Spillover Component, which carbon dioxide emissions is produced in the rest of the economy to meet the needs of the service subsystem.17.18% is the internal scale component,4.98% is the internal spillover component, and 2.7% of the rest three components.After using both additive and multiplicative decomposition methods, the paper mainly decompose the total carbon dioxide emissions in Chinese service subsystem and got six components:internal scale component, internal own component, internal feedback component, internal feedback component, feedback component and spillover component. After analyzing the total carbon dioxide emissions, we get three conclusions:first, the spillover component in 2009 accounted for 74.09%, a total of 801.67 million tons, which means 14% of the carbon dioxide direct emissions in the rest of the economy is emitted to meet the service subsystem’s demand. This conclusion gives evidence of both material production and pollutant production; second, transport-related sectors are the most polluted sectors referring to direct carbon emissions; Third, sector (33) Health and Social Work sector is the most polluted sector referring to total carbon dioxide emissions, mainly due to the high proportion of spillover component. Sector (31) Public Admin and Defence; Compulsory Social Security and sector(34) Other Community, Social and Personal Services follows next. The analysis is sufficient to prove the material and pollutant production in Chinese service industry, which sets the alarm for policy-makers:in addition to transport-related sectors, the service sector is non-direct polluter. Emission reduction policies regarding the services sectors should be demand perspective policies.Finally, the panel data model is to analyze the contributing factors of carbon emission in Chinese service subsystem. The panel data model adopts carbon dioxide emissions as dependent variable, selects eight independent variables:sectoral output, energy tax, fossil energy consumption, electricity and other energy consumption, labor compensation investment, capital compensation investment, labor structure by skills and industrial linkage index. The model gives the following conclusions:energy taxes, labor compensation investment and industrial linkage have positive correlation with service subsystem direct carbon dioxide emissions; sectoral output and electricity and other energy consumption have inverse correlation with service subsystem direct carbon dioxide emissions.Finally, this paper proposes the following policy recommendations:establish demand-driven reduction policies to service industry; set up special performance energy taxes; optimize the energy structure; strengthen staff in energy efficiency through related educations.