How do imports change the energy consumption of China? An analysis of its role in intermediate inputs and final demands.

The imports dependency of China sharply decreases from 27% to 14% during 2007–2020, but how it affects the energy consumption embodied in final demands is unresolved. With the 2007–2019 time-series input-output (I–O) datasets of China, this study employs environmentally extended I–O analysis and structural decomposition analysis to explore the impact of imports change issue. At national level, the input imports effect is responsible for around 15% of the embodied energy consumption growth over the research period, while no more than 5% of that is contributed by the demand imports effect. At sectoral level, the input imports effect happens chiefly via the metals sector from the supply side but mainly via the electrical and optical equipment sector from the demand side. It also puts forward the critical supply chains which can facilitate the input imports effect. Meanwhile, the demand imports effect occurs primarily via machinery, electrical and optical equipment, and transport equipment sectors. The similar analysis can be employed to other countries and indicators. • Imports effects significantly affected China's energy consumption in 2007–2019. • The input imports effect increased China's energy consumption by around 15%. • Demand imports effect increased China's energy consumption by lower than 5%. • Input imports effect from supply side mainly happened in the metals sector. • Demand inputs effect mainly caused by electrical and optical equipment sector. [ABSTRACT FROM AUTHOR]