Based on the emission data of SO2, NOx, soot and dust of industries in China, the hypothetical extraction method (HEM) and the input-output price model were used to calculate the demand emission, output emission and net transferred emissions (NTE). The impacts of the key industries on the industries' demand emission reduction were simulated under different scenarios, and the price coefficients from pollution reduction costs of the key industries were calculated. The results showed that the largest amount of air pollutants were transferred from the power and gas (POW), Nonmetal Products (NONP) and Metals Mining, Smelting and Pressing (METM) in 2014; under the scenarios of 15% reduction rates from the three key industries, the reductions of SO2, NOx, soot and dust emissions accounted for 62.12%, 72.65% and 67.11% of emission reduction targets of the 13th Five-Year Plan respectively. The power and gas (POW) had the greatest impact on emission reduction. If air pollution costs were internalized, the price of other industry would be influenced by POW price in varying degrees. To be specific, the Water Production (WAT), Metal Products (METP), Metals Mining, Smelting and Pressing (METM) and Nonmetal Products (NONP) were most strongly influenced and the total price transmission coefficient was 0.272, 0.151, 0.148 and 0.131 respectively. The government should establish a reasonable mechanism to allocate the costs of emission reduction. This mechanism can not only subsidize the reduction costs of major industries but also stimulate the other industries to improve technology in saving demand from those basic industrial products such as electricity.
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