*4.4. Impacts on the Producer Price Index*

Figure 5 depicts the impact on all sectors' producer price indexes in 2060. We found that energy-intensive industries are the most vulnerable sectors when achieving carbon neutrality targets. Energy processing sectors, such as the processing of coal, oil, and gas (COLP, REFO, and REFG), will be the first three most affected sectors. The results are similar to the relevant literature [59,60]. The prices in 2060 will increase by more than 300% compared with the 2060 BAU scenario. Steel and thermal power prices will increase by about 200% because coke (COLP sector) and raw coal (COL sector) are among the main upstream products of steel and thermal power. The rise in raw materials is a significant factor in the price rises of these sectors.

**Figure 4.** Impacts on energy structure in 2060. (**a**) BAU scenario in 2020; (**b**) BAU scenario in 2060; (**c**) CT scenario in 2060; (**d**) ETS scenario in 2060.

**Figure 5.** Impacts on producer price index in 2060.

In addition, we noticed that the price of low energy-intensive sectors, such as agriculture and services, may not be affected too much by the carbon neutrality target. The price of agriculture and services will increase by about 17.5% and 18.5%, respectively. The price rises in these industries may be caused by the combined effects of the price rise of other industries.
