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The role of intermediate trade in the change of carbon flows within China

Meng, J; Zhang, Z; Mi, Z; Anadon, LD; Zheng, H; Zhang, B; Shan, Y; (2018) The role of intermediate trade in the change of carbon flows within China. Energy Economics , 76 pp. 303-312. 10.1016/j.eneco.2018.10.009. Green open access

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Abstract

In recent years, evaluating the emissions embodied in trade (EEIT) has become an important area of policy and research. Multiregional input-output (MRIO) analysis, which links producers and final consumers, is a widely-used method for quantifying the EEIT. However, the role of intermediate trade in driving changes in the EEIT is still not fully incorporated in MRIO analysis and as a result poorly understood. Here, we present a framework that separately identifies the drivers of the emissions embodied in the trade of final and intermediate products. We implement this framework in a case study in which we analyse the changes in CO2 emissions embodied in interprovincial trade in China from 2007 to 2012. We find that the largest changes are a rising final demand, which is associated with increased emissions that are to some extent offset by decreasing emissions intensity and changing interregional dependency. The rising imports and the growth in final demand in less developed regions in the north and central (e.g., Hebei and Henan) led to reductions in the CO2 emissions outsourced by central coastal regions. The framework enriches our understanding of the role played by intermediate trade in the relocation of emissions.

Type: Article
Title: The role of intermediate trade in the change of carbon flows within China
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.eneco.2018.10.009
Publisher version: https://doi.org/10.1016/j.eneco.2018.10.009
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Structural decomposition analysis, multiregional input-output analysis, CO2, Trade, intermediate products
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment
URI: https://discovery.ucl.ac.uk/id/eprint/10061741
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