Structural path decomposition analysis of resource utilization in China, 1997–2017

With the ever-increasing population and rapid economic development in China, the demand for natural resources has grown substantially. To improve the efficient utilization of resources, it is necessary to know comprehensively the flow and use of natural resources among sectors. The paper uses the environmentally extended input-output analysis (EEIOA) and structural path analysis (SPA) methods to conduct a depth analysis of the flow and use paths of resource consumption in China from 1997 to 2017 in 42 sectors to determine the key supply chains and key sectors, and we also apply the structural path decomposition (SPD) method to investigate the key path changes that drive resource consumption and the key factors that lead to consumption changes in each path. The results show that the crucial supply chain path for the largest resource consumption was “Manufacture of non-metallic mineral products →Construction”, and the flow increased from 1371 million tons in 1997 to 8173 million tons in 2017, the factor production structure was the major driving factor for consumption increase on this path. In addition, the proportion of resources consumed by the agricultural sector decreased during the research period, and consumption intensity was the main driving factor for its consumption decrease. In order to reduce domestic resource consumption as much as possible, policymakers can start with the construction sector to improve the efficient utilization of resources and adjust production structure. • This study investigates the flow and change of resource supply chains in China during 1997–2017. • The resource consumption of the top 20 supply chains increased by 220% from 1997 to 2017. • Production structure is the major factor for consumption increase from non-metal sector to construction sector. • Consumption intensity plays a significant role in reducing consumption.