An optimization model is developed based on the Input–Output model to assess the potential impacts of industrial structure on the energy consumption and CO2 emission. The method is applied to a case study of industrial structure adjustment in Beijing, China. According to the results, several conclusions can be gained.
(1)
Industrial structure adjustment has great potential of energy conservation and carbon reduction. When the average annual growth rate of GDP is 8.29% from 2010 to 2020, industrial structure adjustment can save energy by 39.42% (50.06 Mtce), and reduce CO2 emission by 46.06% (96.31 Mt) in Beijing in 2020. As a result, the energy intensity and carbon intensity decline considerably through industrial structure adjustment.
(2)
Raising the proportion of sectors which are low energy intensive and low carbon intensive is an effective method to save energy and reduce carbon emission. To be specific, Beijing had better strive to develop several low energy intensive and low carbon intensive sectors including S32 (Finance), S29 (Information Transmission, Computer Service and Software), and S20 (Manufacture of Measuring Instrument and Machinery for Cultural Activity and Office Work). On the contrary, the development of several high energy intensive and high carbon intensive sectors had better be strictly controlled including S22 (Scrap and Waste), S7 (Manufacture of Textile) and S24 (Production and Distribution of Gas).
(3)
Energy intensity is possible to decrease without negatively affecting economic growth by reasonable industrial structure adjustment. Moreover, the rapid growth of economy may be beneficial to reduce energy intensity.
(4)
Compared to intensity targets, total amount targets are more effective on the energy conservation and carbon reduction, but have much greater negative effects on economic growth. Therefore, it needs to be balanced between total amount targets and intensity targets.