Trade and Embodied CO2 Emissions: Analysis from a Global Input–Output Perspective

Abstract

Global trade drives the world’s economic development, while a large amount of embodied carbon is transferred among different countries and regions. Based on a multi-regional input–output model, the trade embodied carbon transfers of bilateral trade between 185 countries/regions around the world were calculated. On the basis, regional trade embodied carbon transfer patterns and major national trade patterns in six continents, eight major economic cooperation organizations, and six representative countries/regions were further analyzed. The results showed that Europe was the continent with the largest embodied carbon inflows from trade and Africa was the continent with the largest embodied carbon outflows from trade. China was the country which had the largest embodied carbon outflows from trade, while the United States, France, Japan, and Germany were countries which had embodied carbon inflows from trade. OECD, EU, and NAFTA were the economic cooperation organizations with embodied carbon inflows from trade, while BRICS, SCO, RCEP, OPEC, and ASEAN were economic cooperation organizations with embodied carbon outflows from trade. Developed countries such as the United States, France, and the United Kingdom protected their environment by exporting high-value products and importing low-value and carbon-intensive products. Developing countries such as China and Russia earned foreign exchange by exporting carbon-intensive and commodity products at a huge environmental cost. In contrast, Germany, China, and Russia played different roles in the global industrial chain, while Germany exchanged more trade surpluses at lower environmental costs. Therefore, for different countries and regions, their own industries should be actively upgraded to adjust the import and export structure, the cooperation and coordination in all regions of the world should be strengthened, and the transfers of embodied carbon needs to be reduced to make the trade model sustainable.

Asymmetric effect of environmental tax on CO2 emissions embodied in domestic final demand in South Africa: A NARDL approach

“…The body of literature that analysed this phenomenon focused largely on its dynamics and not its responsiveness to environmental policy, thereby creating an additional layer of vacuum that needs to be taken into consideration when analysing this crucial link. For instance, Zhou et al (2022) provide an interesting insight into this area using a multi-regional input-output model to study embodied carbon transfers between 185 countries and regions. The research found significant regional differences in embodied carbon flows, similar to the findings of Yoon et al (2020), who found China to be a net exporter of embodied carbon emissions to Japan and Korea.…”

“…In similar contexts, studies such as Kang (2021) and Rahman et al (2022) have explored the connection between CO 2 emissions and economic growth, with Kang finding a bidirectional causality between the two. Similarly, studies by Huang and Matsumoto (2022) and Zhou et al (2022) have shed light on the regional differences in embodied carbon flows in domestic imports and exports. Yoon et al (2020) also contribute to the growing body of literature in this area, providing insights into the role of country-level variations in embodied carbon flows.…”

Ensayos selectos sobre macroeconomía de economías emergentes

“…10 Sin embargo, la falta de herramientas e información a un alto nivel de detalle ha dificultado el análisis de este tipo de problemas para identificar cuáles son los mecanismos llevados a cabo por los países para disminuir sus emisiones. Al respecto, en la literatura sobre el tema se habla de un fenómeno conocido como procesos guiados por la hipótesis de paraísos de contaminación(HPC) [Kornerup et al, 2008;Zhou y Kojima, 2010]; este fenómeno se refiere al traslado de ciertos procesos de producción muy contaminantes de empresas que se encuentran en países desarrollados o económicamente preponderantes en países en vías de desarrollo con políticas ambientales menos estrictas.…”