What are the Embedded Emissions from Industrial Consumption?

Final demand embedded emissions are a hot topic in carbon emission mitigation research. Embedding intermediate industrial production (output) emissions into final demand has been extensively studied. However, embedding intermediate industrial consumption (input) emissions into final demand is not well understood. That is mainly due to the complexity of embedding industrial consumption emissions into final demand. Some studies have argued that the latter method is fair and effective in assigning emissions to final demand. This study aims to explain the theory and methodology of embedding industrial consumption-induced emissions to final demand. And to show whether or not the results achieved under the two approaches differ from each other. The study achieves its aim by simply explaining the theory and methodology behind embedding industrial consumption emissions into final demand. And by showing that the results achieved under these two approaches are also quite different at the industrial level. Future researchers and policymakers need to consider alternative methods such as industrial consumption embedded emissions to reduce industrial carbon emissions effectively.