CO2 embodied in trade: trends and fossil fuel drivers

AbstractThe amount of CO2 embodied in trade has substantially increased over the last decades. We contribute to understanding the reasons for this evolution by studying the trends and some drivers of the carbon intensity of trade over the period 1995–2009 in 41 countries and 35 sectors. Our empirical analysis relies on the World Input-Output Database (WIOD) to compute embodied carbon emissions. Our main findings are the following. First, average emission intensity of traded goods is higher than average emission intensity of final demand. Second, relatively “dirty” countries tend to specialize in emission-intensive sectors. Third, the share of goods produced in emission-intensive countries is rising. Finally, we find that coal abundance (measured as fuel rent and controlling for reverse causality) leads both to a specialization in “dirty” sectors and to an increase in emissions per output when controlling for sector structure, which amounts to a fossil fuel endowment effect. These findings suggest trade liberalization may increase global emissions and therefore highlight the importance of considering trade when designing CO2 reduction strategies.

Download Full-text

Monthly, global emissions of carbon dioxide from fossil fuel consumption

Tellus B ◽

10.3402/tellusb.v63i3.16211 ◽

2011 ◽

Vol 63 (3) ◽

Cited By ~ 3

Author(s):

R. J. Andres ◽

J. S. Gregg ◽

L. Losey ◽

G. Marland ◽

T. A. Boden

Keyword(s):

Carbon Dioxide ◽

Fuel Consumption ◽

Fossil Fuel ◽

Fossil Fuel Consumption ◽

Global Emissions

Download Full-text

The Changes of Carbon Emission in China’s Industrial Sectors from 2002 to 2010: A Structural Decomposition Analysis and Input-Output Subsystem

Discrete Dynamics in Nature and Society ◽

10.1155/2014/798576 ◽

2014 ◽

Vol 2014 ◽

pp. 1-9 ◽

Cited By ~ 2

Author(s):

Guoxing Zhang ◽

Mingxing Liu

Keyword(s):

Carbon Emissions ◽

Emission Intensity ◽

Carbon Emission ◽

Decomposition Analysis ◽

Final Demand ◽

Good Effect ◽

Input Output ◽

Carbon Emission Intensity ◽

Industrial Sectors ◽

Three Components

Based on 2002–2010 comparable price input-output tables, this paper first calculates the carbon emissions of China’s industrial sectors with three components by input-output subsystems; next, we decompose the three components into effect of carbon emission intensity, effect of social technology, and effect of final demand separately by structure decomposition analysis; at last, we analyze the contribution of every effect to the total emissions by sectors, thus finding the key sectors and key factors which induce the changes of carbon emissions in China’s industrial sectors. Our results show that in the latest 8 years five departments have gotten the greatest increase in the changes of carbon emissions compare with other departments and the effect of final demand is the key factor leading to the increase of industrial total carbon emissions. The decomposed effects show a decrease in carbon emission due to the changes of carbon emission intensity between 2002 and 2010 compensated by an increase in carbon emissions caused by the rise in final demand of industrial sectors. And social technological changes on the reduction of carbon emissions did not play a very good effect and need further improvement.

Download Full-text

A synthesis of carbon in international trade

Biogeosciences Discussions ◽

10.5194/bgd-9-3949-2012 ◽

2012 ◽

Vol 9 (3) ◽

pp. 3949-4023 ◽

Cited By ~ 26

Author(s):

G. P. Peters ◽

S. J. Davis ◽

R. M. Andrew

Keyword(s):

International Trade ◽

Co2 Emissions ◽

Fossil Fuels ◽

Wood Products ◽

Total Production ◽

Goods And Services ◽

Traded Goods ◽

Harvested Wood Products ◽

Global Emissions ◽

Embodied Co2 Emissions

Abstract. In a globalised world, the transfer of carbon between regions, either physically or embodied in production, represents a substantial fraction of global carbon emissions. The resulting emission transfers are important for balancing regional carbon budgets and for understanding the drivers of regional emissions. In this paper we synthesise current understanding in two parts: (1) embodied CO2 emissions from the production of goods and services produced in one country but consumed in others, (2) physical carbon flows in fossil fuels, petroleum-derived products, harvested wood products, crops, and livestock. We describe the key differences between studies and provide a consistent set of estimates using the same definitions, modelling framework, and consistent data. We find the largest trade flows of carbon in international trade in 2004 were fossil fuels (2673 MtC, 37% of global emissions), CO2 embodied in traded goods and services (1661 MtC, 22% of global emissions), livestock (651 MtC, 20% of total livestock carbon), crops (522 MtC, 31% of total harvested crop carbon), petroleum-based products (183 MtC, 50% of their total production), and harvested wood products (149 MtC, 40% of total roundwood extraction). We find that for embodied CO2 emissions estimates from independent studies are robust. We found that differences between individual studies is not representative of the uncertainty in consumption-based estimates as different studies use different production-based emission estimates as input and different definitions of allocating emissions to international trade. After adjusting for these issues, results across independent studies converge to give less uncertainty than previously assumed. For physical carbon flows there are relatively few studies to be synthesised, but differences between existing studies are due to the method of allocating to international trade with some studies using "apparent consumption" as opposed to "final consumption" in more comprehensive approaches. While results across studies are robust to be used in further applications, more research is needed to understand the differences between methods and to harmonise definitions for particular applications.

Download Full-text

Is There Any Difference in the Effect of Different R and D Sources on Carbon Intensity in China?

Sustainability ◽

10.3390/su11061701 ◽

2019 ◽

Vol 11 (6) ◽

pp. 1701 ◽

Cited By ~ 3

Author(s):

Feng Feng ◽

Linlin Peng

Keyword(s):

Critical Issue ◽

Government Support ◽

Carbon Intensity ◽

Threshold Regression ◽

Carbon Reduction ◽

R And D ◽

Reduction Strategies ◽

Great Pressure ◽

The Government ◽

Threshold Regression Model

In recent decades, climate change, mostly caused by CO2 emissions, has become a critical issue of concern to people worldwide. It is necessary for countries all around the world to reduce carbon emissions. China, as the world’s largest carbon emitter, is under great pressure to implement carbon-reduction strategies. Technological progress plays a crucial role in balancing environmental and economic development. The main objective of this work is to empirically compare the effects of government and enterprise research and development (R and D) on carbon-emission reduction using the panel data of 30 Chinese provinces from 2009 to 2016. The effects of both government and enterprise R and D investment on carbon intensity are compared in detail through a linear model and a threshold-regression model. Linear-regression results shows that both government and enterprise R and D decrease carbon intensity, while enterprise investment tends to be more instant. Further threshold-regression results indicate that the effects of government and enterprise R and D on carbon intensity are different in different urbanization stages. Guiding enterprises to invest in R and D in medium-developing areas, and increasing government support and subsidies for R and D activities in underdeveloped areas should be an important goal of the government policies.

Download Full-text

The driving force effect of trade embodied carbon emissions and embodied SO2 emissions transferred in resources-rich areas: A case study of Shanxi province

10.21203/rs.3.rs-866541/v1 ◽

2021 ◽

Author(s):

Jinghui Wu

Keyword(s):

Scale Effect ◽

Carbon Emissions ◽

Final Demand ◽

Structure Effect ◽

Input Output ◽

Embodied Carbon ◽

Output Structure ◽

Embodied Carbon Emissions ◽

Sulfur Emissions ◽

Strength Effect

Abstract SDA (Structural Decomposition Analysis) model was applied to analyze the driving factors of embodied carbon and SO2 emissions transferred in Shanxi during 2007–2012 based on the input-output model from the perspectives of region and industry. The results showed that the change of embodied carbon emissions and embodied SO2 emissions of Shanxi and other regions were hindered by the carbon (sulfur) emissions strength effect, but promoted by the intermediate (final) demand scale effect, the intermediate (final) structure effect and the input-output structure effect. The carbon emissions strength effect had a significant contribution to reducing the embodied carbon emissions transferred from industries in Shanxi to other regions. The intermediate (final) demand scale effect was the driving factor to increase the embodied carbon emissions transferred from industries in Shanxi to other regions. The sulfur emissions strength effect was the only factor that reduced the embodied SO2 emissions transferred from Shanxi to other industries. The change of embodied carbon emissions from industries in other regions to Shanxi was hindered by the carbon emissions strength effect, but the input-output structure effect and final demand scale effect both increased the embodied carbon emissions from industries in other regions to Shanxi. The change of the embodied SO2 emissions transferred from industries in other regions to Shanxi was inhibited by the sulfur emissions strength effect, but the input-output structure effect, the intermediate demand structure effect and the final demand scale effect were both the driving force effect of increasing the embodied SO2 emissions transferred from industries in other regions to Shanxi. The corresponding suggestions and measures were put forward.

Download Full-text

Trade Impacts on Embodied Carbon Emissions—Evidence from the Bilateral Trade between China and Germany

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph17145076 ◽

2020 ◽

Vol 17 (14) ◽

pp. 5076

Author(s):

Jiajia Li ◽

Abbas Ali Chandio ◽

Yucong Liu

Keyword(s):

Emerging Economies ◽

Carbon Emissions ◽

Bilateral Trade ◽

Empirical Studies ◽

Carbon Intensity ◽

Policy Makers ◽

Embodied Carbon ◽

Increasing Trend ◽

Embodied Carbon Emissions

This article attempts to investigate the impacts of bilateral trade on the environment by estimating the embodied carbon emissions between China and Germany over the period 1999–2018. The above impacts are broadly explored in the literature both under the framework of theoretical and empirical analysis. However, there exist fewer empirical studies exploring the nonlinear relationship between trade volumes and carbon emissions between a well-developed and emerging economies. By applying the multiregional input-output (MRIO) model, this article aims to reveal the impacts of trade on the environment in the case of China–Germany. Specifically, trade amounts between China and Germany rank high with a similarly increasing trend and both of them are large net exporting countries. However, China experienced much larger carbon emissions embodied in its exports to Germany. Despite potential concerns on the carbon leakage issue of China from Germany, we find that the bilateral trades fit an inverse U-shape in the embodied carbon emissions, which suggests that the trade between the two countries can finally reduce carbon intensity without obstructing economic development particularly in the long-term. This paper guides policy-makers to quantify the issue of CO2 transfer among bilateral trades in order to achieve the target of trading sustainability.

Download Full-text

Energy Supply Measures to Reduce Regional Carbon Intensity: Opportunities and Constraints

Energy & Environment ◽

10.1177/0958305x9800900305 ◽

1998 ◽

Vol 9 (3) ◽

pp. 297-319 ◽

Cited By ~ 2

Author(s):

D. Mcevoy ◽

D.C. Gibbs ◽

J.W.S. Longhurst

Keyword(s):

Global Warming ◽

Energy Supply ◽

Carbon Intensity ◽

City Region ◽

Carbon Reduction ◽

Reduction Strategies ◽

Late Twentieth ◽

Recent Trends ◽

Mitigation Action ◽

Informed Opinion

The perceived threat of 'enhanced' global warming has become a widespread public concern since the late 1980s, with the balance of informed opinion urging world-wide collaboration on combating the causes of global warming. The increasingly globalised status of the majority of late twentieth century economies ensures that remedial action will ultimately require a degree of international cooperation. Although the formulation of environmentally friendly energy policies, including carbon reduction strategies, can be framed at international and national levels, recent trends are for CO2 reduction measures to be instigated by regional, or local, authorities.This paper focuses on the city-region of Greater Manchester, U.K., and reviews both existing and potential energy supply options for reducing regional CO2 emissions, highlighting the benefits and obstacles facing carbon reduction measures implemented at a 'local' scale1. Mitigation action at this level is considered desirable as remedial measures have most chance of success when accompanied by the supportive involvement of local people.

Download Full-text

Determinants of Energy-Based CO2 Emissions in Ethiopia: A Decomposition Analysis from 1990 to 2017

Sustainability ◽

10.3390/su12104175 ◽

2020 ◽

Vol 12 (10) ◽

pp. 4175 ◽

Cited By ~ 1

Author(s):

Gideon Nkam Taka ◽

Ta Thi Huong ◽

Izhar Hussain Shah ◽

Hung-Suck Park

Keyword(s):

Co2 Emissions ◽

Emission Intensity ◽

Energy Intensity ◽

Fossil Fuel ◽

Driving Forces ◽

Economic Effect ◽

Decomposition Analysis ◽

Rapid Urbanization ◽

Intensity Effect ◽

Decomposition Approach

Ethiopia, among the fastest growing economies worldwide, is witnessing rapid urbanization and industrialization that is fueled by greater energy consumption and high levels of CO2 emissions. Currently, Ethiopia is the third largest CO2 emitter in East Africa, yet no comprehensive study has characterized the major drivers of economy-wide CO2 emissions. This paper examines the energy-related CO2 emissions in Ethiopia, and their driving forces between 1990 and 2017 using Kaya identity combined with Logarithmic Mean Divisia Index (LMDI) decomposition approach. Main findings reveal that energy-based CO2 emissions have been strongly driven by the economic effect (52%), population effect (43%), and fossil fuel mix effect (40%) while the role of emission intensity effect (14%) was less pronounced during the study period. At the same time, energy intensity improvements have slowed down the growth of CO2 emissions by 49% indicating significant progress towards reduced energy per unit of gross domestic product (GDP) during 1990-2017. Nonetheless, for Ethiopia to achieve its 2030 targets of low-carbon economy, further improvements through reduced emission intensity (in the industrial sector) and fossil fuel share (in the national energy mix) are recommended. Energy intensity could be further improved by technological innovation and promotion of energy-frugal industries.

Download Full-text