From Geospatial to Temporal Separation: A Review on Carbon Accounting Endogenizing Fixed Capital

A scientific and systematic approach that provides accurate carbon accounting is a fundamental prerequisite for responding to the climate crisis. The carbon accounting system has evolved from production-based accounting measuring territorial emissions to consumption-based accounting, gradually covering spatial and temporal separation. Its scientificity is thus enhanced. The temporal separation (between past production and current consumption) from fixed capital has become of recent interest, but a panoramic overview still rarely exists because of longstanding neglect. Combining quantitative analysis with a literature review, this study systematically analyzed the historical development and current state of carbon accounting, especially on studies endogenizing fixed capital, to locate hotspots and predict future trends. The current studies with fixed capital endogenization mainly use a flow matrix and augmented method to analyze the total and structure and the difference with traditional results, which are still in the initial rise stage; however, the process analysis and influence factor identification are insufficient. Therefore, this study proposes future avenues for analyzing the entire process of spatial and temporal carbon transfer based on a metabolic perspective and considering the initial input factors to identify the key drivers, which will provide new ideas and perspectives for policy formulation.