Decomposing patterns of emission intensity in the EU and China: how much does trade matter?

Abstract

This paper uses data from the World Input Output Database (WIOD) to examine channels through which CO2 emissions are embodied within and imported into the European production process. We apply a metric to calculate sectoral emission intensity and thus rank countries and sectors in the EU in terms of their emission intensity, and look at the evolution of patterns of emission intensity in 2005 and in 2009. We use an input-output price model to simulate the effect that a rise in the price of EU-ETS allowances, from $17 to $25 /tonne, would have on the final price of goods in each EU country and sector. We find that all countries in the EU reduced the emission-intensity of their production processes from 2005 to 2009, and we find that the reduction was greatest in those sectors regulated under the ETS. Comparisons of emission intensity between countries show that industries in Central and Eastern Europe are more emission intensive than those of Northern Europe, where industries import emission-intensive goods rather than producing them domestically. Corresponding Author: valeria.dicosmo@esri.ie

Greenhouse gas (GHG) emissions in Australian states and territories: Determinants and policy implications

“…+ [11], [13], [15] and [20] 6 Imports [M] Consumption of imported goods leads to higher emissions. + [28] and [29] 7 Exports [X] Production of exported goods causes higher emissions. + [29] and [30] 8 Construction [Con] Building and construction have a high carbon foot print due to their processes.…”

Tales From the Tails: Sector-Level Carbon Intensity Distribution

“…Put differently, the LCI sectors, particularly in developing countries, are among the most dynamic sectors of the economy. Voigt et al (2014), and Di Cosmo & Hyland (2015) are recent studies which use the same dataset with a similar motivation. 1 The focus of Voigt et al (2014) is energy intensity changes across countries and sectors using multiplicative index decomposition analysis (IDA).…”

“…They confirm that the main conclusions of Voigt et al (2014) remain valid for carbon intensity. Di Cosmo & Hyland (2015) do not undertake a decomposition analysis but compare the carbon intensity of sectors regulated under the European Union's Emissions Trading System (EU-ETS) to those sectors not covered by the EU-ETS both in the EU and in China. Based on evidence from two years, i.e.…”