Reducing greenhouse gas emissions in China’s automobile manufacturing with circular economy strategies

Circular economy strategies encompass a wide range of approaches and initiatives designed to foster sustainable resource utilization and minimize waste, particularly in the context of complex products such as automobiles. These strategies encompass, among others, material recycling and reuse, energy recovery, efficiency enhancements, and circular-focused product design. To evaluate the potential of different circular economy strategies to reduce greenhouse gas emissions in China’s automobile manufacturing, this research employs the input-output subsystems approach to analyze three distinct scenarios based on the interconnections between various components: the low-carbon transition of the energy structure, closed-loop material recycling, and the transition to shared mobility. The findings reveal that spillover component emissions account for over 98% of the total emissions of the automobile manufacturing sector. The circular economy model, through material recycling, can significantly cut down emissions from these spillover components, thereby aiding the automobile manufacturing industry in meeting its emission reduction targets. Notably, compared to relying solely on the low-carbon transition of the energy structure, the closed-loop material recycling scenario can reduce greenhouse gas emissions by approximately 10% through the recycling of steel and plastics alone. Moreover, the transition to shared mobility has the potential to achieve an additional 4%-18% reduction in greenhouse gas emissions by diminishing the final demand for automotive products.