Value-Added-Based Accounting of CO2 Emissions: A Multi-Regional Input-Output Approach

Abstract

Abstract:In the era of globalization and international trade, the production-based CO 2 emissions accounting system, proposed by United Nations Framework Convention on Climate Change, can easily lead to a "carbon leakage" issue. Thus, the accounting of consumption-based carbon emissions and carbon emissions embodied in international trade has received considerable research attention. Nevertheless, researchers also indicated that the consumption-based principle has some weaknesses, for example, it leads the producers inert on reducing carbon emissions while gaining economic benefits. To share carbon emissions responsibilities between producers and consumers is widely recognized. So, setting an income-based emissions accounting method as to producer is a necessary complement for accounting national carbon emissions. This study promoted a model, called the value-added-based accounting of CO 2 emissions method, to account for anthropogenic CO 2 emissions within the context of the economic benefit principle. Based on the global multi-regional input-output table and national carbon emissions database, we calculated the national/regional carbon emissions based on the value-added accounting approach as well as the amount of global carbon emissions embodied in value-added chains. If the results are served as a supplement for calculating the amount of CO 2 emissions reduction that a country is responsible for, problems such as carbon leakage and resistance to improving the energy efficiency of exporting sector may be solved, because all the supply chains emissions associated with the economic growth of a country would be considered.

Socioeconomic determinants of China's growing CH4 emissions

“…Higher income translates to higher consumption capacity and greater demands for environmental resource inputs. The Ghosh supply-push input-output model can capture the linkages of value-added with primary inputs, which has been used to estimate the enabled emissions of CO and air pollutants driven by the value added using the income-based accounting method (e.g., Liu et al, 2010;Zhang, 2010;Marques et al, 2013;Liang et al, 2016a,b;Liu and Fan, 2017). Furthermore, the method of structural decomposition analysis (SDA) enables researchers to examine the driving forces of resources, emissions and other physical quantities (e.g., Hoekstra and Van Den Bergh, 2002;Ang, 2012, 2017;Arto and Dietzenbacher, 2014;Malik et al, 2016;Deng and Xu, 2017;Wang et al, 2017a).…”

Cost Allocation Mechanism Design for Urban Utility Tunnel Construction Based on Cooperative Game and Resource Dependence Theory

“…According to the benefit principle [19], the benefit-based proportional method (BPM) determines the cost allocation ratio of each pipeline company according to the economic benefit that the pipeline produces when laid into a utility tunnel. The economic benefit of each pipeline company (also known as the investment income) mainly includes the construction cost reduction caused by the decrease of repeated laying times of the pipeline, and the maintenance cost reduction caused by the decrease of pipeline breakage rate and leakage rate within the life cycle of UUT.…”

Green Procurement Decisions with Carbon Leakage by Global Suppliers and Order Quantities under Different Carbon Tax

“…Martin et al [37] analyzed the current scheme in order to address the carbon leakage implemented in the EU ETS. Liu and Fan [38] estimated the value-added based accounting of CO 2 Emissions (VBE), which was also named accumulated CO 2 emissions behind economic increase. They also found that emission importers would be helpful for emission exporters to reduce carbon emissions if the VBE system is applied [38].…”

“…Liu and Fan [38] estimated the value-added based accounting of CO 2 Emissions (VBE), which was also named accumulated CO 2 emissions behind economic increase. They also found that emission importers would be helpful for emission exporters to reduce carbon emissions if the VBE system is applied [38]. Finally, Barker et al [39] studied the potential carbon leakage in six examples of ETRs in Europe by measuring the carbon leakage.…”