IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v111y2017icp85-94.html
   My bibliography  Save this article

Global primary energy use associated with production, consumption and international trade

Author

Listed:
  • Wu, X.F.
  • Chen, G.Q.

Abstract

Presented in this study is a comprehensive analysis for energy use of different economic entities in global supply chains, including the exploiter, producer, consumer, intermediate trader and final trader. The systems input-output analysis method is adopted to trace the direct and indirect energy use associated with both intermediate production and final consumption activities in the economic system. In the world economy, 15% of the energy use embodied in trade turns out to be induced by final consumption, and 85% is attributed to intermediate production. Different trading patterns for different economies are identified with the separation between energy trade for intermediate production and that for final consumption. For Japan with a production-oriented trading pattern, intermediate trade should be a top priority in local trade structure adjustment, while final trade needs more attention for the government in the United States as the country is in a consumption-oriented trade pattern. This analysis aims to provide an in-depth insight into energy sustainability, as well as a sound scientific reference for policy making at the regional, national and global scale.

Suggested Citation

  • Wu, X.F. & Chen, G.Q., 2017. "Global primary energy use associated with production, consumption and international trade," Energy Policy, Elsevier, vol. 111(C), pages 85-94.
    • Handle: RePEc:eee:enepol:v:111:y:2017:i:c:p:85-94
    DOI: 10.1016/j.enpol.2017.09.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517305839
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.09.024?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Park, Hi-Chun & Heo, Eunnyeong, 2007. "The direct and indirect household energy requirements in the Republic of Korea from 1980 to 2000--An input-output analysis," Energy Policy, Elsevier, vol. 35(5), pages 2839-2851, May.
    2. Hölscher, Jens & Marelli, Enrico & Signorelli, Marcello, 2010. "China and India in the global economy," Economic Systems, Elsevier, vol. 34(3), pages 212-217, September.
    3. Lozano Maya, Juan Roberto, 2013. "The United States experience as a reference of success for shale gas development: The case of Mexico," Energy Policy, Elsevier, vol. 62(C), pages 70-78.
    4. Wu, X.D. & Xia, X.H. & Chen, G.Q. & Wu, X.F. & Chen, B., 2016. "Embodied energy analysis for coal-based power generation system-highlighting the role of indirect energy cost," Applied Energy, Elsevier, vol. 184(C), pages 936-950.
    5. Chen, B. & Yang, Q. & Zhou, Sili & Li, J.S. & Chen, G.Q., 2017. "Urban economy's carbon flow through external trade: Spatial-temporal evolution for Macao," Energy Policy, Elsevier, vol. 110(C), pages 69-78.
    6. Ricardo J. Caballero & Arvind Krishnamurthy, 2009. "Global Imbalances and Financial Fragility," American Economic Review, American Economic Association, vol. 99(2), pages 584-588, May.
    7. Bullard, Clark W. & Herendeen, Robert A., 1975. "The energy cost of goods and services," Energy Policy, Elsevier, vol. 3(4), pages 268-278, December.
    8. Wang, Qiang & Chen, Xi & Jha, Awadhesh N. & Rogers, Howard, 2014. "Natural gas from shale formation – The evolution, evidences and challenges of shale gas revolution in United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 1-28.
    9. Chen, G.Q. & Wu, X.F., 2017. "Energy overview for globalized world economy: Source, supply chain and sink," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 735-749.
    10. Wu, X.F. & Chen, G.Q., 2017. "Energy use by Chinese economy: A systems cross-scale input-output analysis," Energy Policy, Elsevier, vol. 108(C), pages 81-90.
    11. Pachauri, Shonali & Spreng, Daniel, 2002. "Direct and indirect energy requirements of households in India," Energy Policy, Elsevier, vol. 30(6), pages 511-523, May.
    12. Cellura, Maurizio & Longo, Sonia & Mistretta, Marina, 2011. "The energy and environmental impacts of Italian households consumptions: An input–output approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3897-3908.
    13. Chow, Larry C.H., 2010. "Changes in energy intensiveness of Hong Kong economy, 1995-2007," Energy Policy, Elsevier, vol. 38(5), pages 2076-2085, May.
    14. Jones, Glenn A. & Warner, Kevin J., 2016. "The 21st century population-energy-climate nexus," Energy Policy, Elsevier, vol. 93(C), pages 206-212.
    15. Warner, Kevin J. & Jones, Glenn A., 2017. "A population-induced renewable energy timeline in nine world regions," Energy Policy, Elsevier, vol. 101(C), pages 65-76.
    16. Liu, Hong-Tao & Guo, Ju-E & Qian, Dong & Xi, You-Min, 2009. "Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input-output analysis," Energy Policy, Elsevier, vol. 37(8), pages 3194-3204, August.
    17. Zhang, Jingjing, 2015. "Carbon emission, energy consumption and intermediate goods trade: A regional study of East Asia," Energy Policy, Elsevier, vol. 86(C), pages 118-122.
    18. Chapman, P. F., 1974. "1. Energy costs: a review of methods," Energy Policy, Elsevier, vol. 2(2), pages 91-103, June.
    19. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
    20. Chen, G.Q. & Li, J.S. & Chen, B. & Wen, C. & Yang, Q. & Alsaedi, A. & Hayat, T., 2016. "An overview of mercury emissions by global fuel combustion: The impact of international trade," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 345-355.
    21. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    22. Li, J.S. & Chen, G.Q. & Wu, X.F. & Hayat, T. & Alsaedi, A. & Ahmad, B., 2014. "Embodied energy assessment for Macao׳s external trade," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 642-653.
    23. Manfred Lenzen & Daniel Moran & Keiichiro Kanemoto & Arne Geschke, 2013. "Building Eora: A Global Multi-Region Input-Output Database At High Country And Sector Resolution," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 20-49, March.
    24. Chen, Z.M. & Chen, G.Q., 2011. "An overview of energy consumption of the globalized world economy," Energy Policy, Elsevier, vol. 39(10), pages 5920-5928, October.
    25. Chen, Shaoqing & Chen, Bin, 2015. "Urban energy consumption: Different insights from energy flow analysis, input–output analysis and ecological network analysis," Applied Energy, Elsevier, vol. 138(C), pages 99-107.
    26. Haiyan Zhang & Michael L. Lahr & Jun Bi, 2016. "Challenges of green consumption in China: a household energy use perspective," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 183-201, June.
    27. Zhang, Bo & Yang, T.R. & Chen, B. & Sun, X.D., 2016. "China’s regional CH4 emissions: Characteristics, interregional transfer and mitigation policies," Applied Energy, Elsevier, vol. 184(C), pages 1184-1195.
    28. Blanca Gallego & Manfred Lenzen, 2005. "A consistent input-output formulation of shared producer and consumer responsibility," Economic Systems Research, Taylor & Francis Journals, vol. 17(4), pages 365-391.
    29. Xia, X.H. & Chen, Y.B. & Li, J.S. & Tasawar, H. & Alsaedi, A. & Chen, G.Q., 2014. "Energy regulation in China: Objective selection, potential assessment and responsibility sharing by partial frontier analysis," Energy Policy, Elsevier, vol. 66(C), pages 292-302.
    30. Limmeechokchai, Bundit & Suksuntornsiri, Pawinee, 2007. "Embedded energy and total greenhouse gas emissions in final consumptions within Thailand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(2), pages 259-281, February.
    31. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    32. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Shan & Li, Yilin & He, Ping & Chen, Haosong & Meng, Jing, 2021. "Embodied energy use of China's megacities: A comparative study of Beijing and Shanghai," Energy Policy, Elsevier, vol. 155(C).
    2. Yue Fu & Long Xue & Yixin Yan & Yao Pan & Xiaofang Wu & Ying Shao, 2021. "Energy Network Embodied in Trade along the Belt and Road: Spatiotemporal Evolution and Influencing Factors," Sustainability, MDPI, vol. 13(19), pages 1-29, September.
    3. Kan, S.Y. & Chen, B. & Wu, X.F. & Chen, Z.M. & Chen, G.Q., 2019. "Natural gas overview for world economy: From primary supply to final demand via global supply chains," Energy Policy, Elsevier, vol. 124(C), pages 215-225.
    4. Zhu, Bangzhu & Su, Bin & Li, Yingzhu & Ng, Tsan Sheng, 2020. "Embodied energy and intensity in China’s (normal and processing) exports and their driving forces, 2005-2015," Energy Economics, Elsevier, vol. 91(C).
    5. Wang, Qiang & Jiang, Feng & Li, Rongrong, 2022. "Assessing supply chain greenness from the perspective of embodied renewable energy – A data envelopment analysis using multi-regional input-output analysis," Renewable Energy, Elsevier, vol. 189(C), pages 1292-1305.
    6. Rabiul Islam & Rusdi Omar & Ahmad Bashawir Abdul Ghani & Bakri Mat, 2020. "Impact of Global Energy Politics on International Trade," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 109-115.
    7. Xia, Quanzhi & Han, Mengyao & Guan, Shihui & Wu, Xiaofang & Zhang, Bo, 2022. "Tracking embodied energy flows of China's megacities via multi-scale supply chains," Energy, Elsevier, vol. 260(C).
    8. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    9. Tian, Xu & Chen, Bin & Geng, Yong & Zhong, Shaozhuo & Gao, Cuixia & Wilson, Jeffrey & Cui, Xiaowei & Dou, Yi, 2019. "Energy footprint pathways of China," Energy, Elsevier, vol. 180(C), pages 330-340.
    10. Song, Zhouying & Zhu, Qiaoling & Han, Mengyao, 2021. "Tele-connection of global crude oil network: Comparisons between direct trade and embodied flows," Energy, Elsevier, vol. 217(C).
    11. Ji, Xi & Han, Mengyao & Ulgiati, Sergio, 2020. "Optimal allocation of direct and embodied arable land associated to urban economy: Understanding the options deriving from economic globalization," Land Use Policy, Elsevier, vol. 91(C).
    12. Zhang, Yi & Fan, Ying & Xia, Yan, 2021. "Structural evolution of energy embodied in final demand as economic growth: Empirical evidence from 25 countries," Energy Policy, Elsevier, vol. 156(C).
    13. Thobekile Qabhobho & Anokye M. Adam & Emmanuel Asafo-Adjei, 2023. "Do Local and International Shocks Matter in the Interconnectedness amid Exchange Rates and Energy Commodities? Insights into BRICS Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 666-678, November.
    14. Jiang, Lei & He, Shixiong & Tian, Xi & Zhang, Bo & Zhou, Haifeng, 2020. "Energy use embodied in international trade of 39 countries: Spatial transfer patterns and driving factors," Energy, Elsevier, vol. 195(C).
    15. Zhang, Ning & Choi, Yongrok & Wang, Wei, 2019. "Does energy research funding work? Evidence from the Natural Science Foundation of China using TEI@I method," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 369-380.
    16. Usubiaga-Liaño, Arkaitz & Arto, Iñaki & Acosta-Fernández, José, 2021. "Double accounting in energy footprint and related assessments: How common is it and what are the consequences?," Energy, Elsevier, vol. 222(C).
    17. Kan, Siyi & Chen, Bin & Meng, Jing & Chen, Guoqian, 2020. "An extended overview of natural gas use embodied in world economy and supply chains: Policy implications from a time series analysis," Energy Policy, Elsevier, vol. 137(C).
    18. Meng, Jing & Zhang, Zengkai & Mi, Zhifu & Anadon, Laura Diaz & Zheng, Heran & Zhang, Bo & Shan, Yuli & Guan, Dabo, 2018. "The role of intermediate trade in the change of carbon flows within China," Energy Economics, Elsevier, vol. 76(C), pages 303-312.
    19. Shepard, Jun U. & Pratson, Lincoln F., 2020. "Hybrid input-output analysis of embodied energy security," Applied Energy, Elsevier, vol. 279(C).
    20. Hanspeter Wieland & Stefan Giljum & Nina Eisenmenger & Dominik Wiedenhofer & Martin Bruckner & Anke Schaffartzik & Anne Owen, 2020. "Supply versus use designs of environmental extensions in input–output analysis: Conceptual and empirical implications for the case of energy," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 548-563, June.
    21. Grzegorz Przekota, 2023. "Do Household Electricity Prices in European Union Countries Depend on the Energy Mix?," Energies, MDPI, vol. 16(21), pages 1-15, October.
    22. Jaakko J. Jääskeläinen & Sakari Höysniemi & Sanna Syri & Veli-Pekka Tynkkynen, 2018. "Finland’s Dependence on Russian Energy—Mutually Beneficial Trade Relations or an Energy Security Threat?," Sustainability, MDPI, vol. 10(10), pages 1-25, September.
    23. Kan, Siyi & Chen, Bin & Chen, Guoqian, 2019. "Worldwide energy use across global supply chains: Decoupled from economic growth?," Applied Energy, Elsevier, vol. 250(C), pages 1235-1245.
    24. Wu, X.D. & Guo, J.L. & Ji, Xi & Chen, G.Q., 2019. "Energy use in world economy from household-consumption-based perspective," Energy Policy, Elsevier, vol. 127(C), pages 287-298.
    25. Jerzy Rembeza & Grzegorz Przekota, 2022. "Influence of the Industry’s Output on Electricity Prices: Comparison of the Nord Pool and HUPX Markets," Energies, MDPI, vol. 15(16), pages 1-15, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kan, S.Y. & Chen, B. & Wu, X.F. & Chen, Z.M. & Chen, G.Q., 2019. "Natural gas overview for world economy: From primary supply to final demand via global supply chains," Energy Policy, Elsevier, vol. 124(C), pages 215-225.
    2. Chen, G.Q. & Wu, X.F., 2017. "Energy overview for globalized world economy: Source, supply chain and sink," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 735-749.
    3. Li, Yilin & Chen, Bin & Li, Chaohui & Li, Zhi & Chen, Guoqian, 2020. "Energy perspective of Sino-US trade imbalance in global supply chains," Energy Economics, Elsevier, vol. 92(C).
    4. Wu, X.D. & Guo, J.L. & Ji, Xi & Chen, G.Q., 2019. "Energy use in world economy from household-consumption-based perspective," Energy Policy, Elsevier, vol. 127(C), pages 287-298.
    5. Wu, X.F. & Chen, G.Q., 2018. "Coal use embodied in globalized world economy: From source to sink through supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 978-993.
    6. Kan, Siyi & Chen, Bin & Meng, Jing & Chen, Guoqian, 2020. "An extended overview of natural gas use embodied in world economy and supply chains: Policy implications from a time series analysis," Energy Policy, Elsevier, vol. 137(C).
    7. Wu, X.D. & Guo, J.L. & Han, M.Y. & Chen, G.Q., 2018. "An overview of arable land use for the world economy: From source to sink via the global supply chain," Land Use Policy, Elsevier, vol. 76(C), pages 201-214.
    8. Chen, B. & Li, J.S. & Wu, X.F. & Han, M.Y. & Zeng, L. & Li, Z. & Chen, G.Q., 2018. "Global energy flows embodied in international trade: A combination of environmentally extended input–output analysis and complex network analysis," Applied Energy, Elsevier, vol. 210(C), pages 98-107.
    9. José A. Camacho & Lucas Silva Almeida & Mercedes Rodríguez & Jesús Molina, 2022. "Domestic versus foreign energy use: an analysis for four European countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 4602-4622, April.
    10. Wu, X.F. & Chen, G.Q., 2019. "Global overview of crude oil use: From source to sink through inter-regional trade," Energy Policy, Elsevier, vol. 128(C), pages 476-486.
    11. Wu, X.D. & Guo, J.L. & Chen, G.Q., 2018. "The striking amount of carbon emissions by the construction stage of coal-fired power generation system in China," Energy Policy, Elsevier, vol. 117(C), pages 358-369.
    12. Sun, Xudong & Li, Jiashuo & Qiao, Han & Zhang, Bo, 2017. "Energy implications of China's regional development: New insights from multi-regional input-output analysis," Applied Energy, Elsevier, vol. 196(C), pages 118-131.
    13. Wu, X.D. & Ji, Xi & Li, Chaohui & Xia, X.H. & Chen, G.Q., 2019. "Water footprint of thermal power in China: Implications from the high amount of industrial water use by plant infrastructure of coal-fired generation system," Energy Policy, Elsevier, vol. 132(C), pages 452-461.
    14. Xu, Xueliu & Wang, Qian & Ran, Chenyang & Mu, Mingjie, 2021. "Is burden responsibility more effective? A value-added method for tracing worldwide carbon emissions," Ecological Economics, Elsevier, vol. 181(C).
    15. Li, Y.L. & Chen, B. & Chen, G.Q., 2020. "Carbon network embodied in international trade: Global structural evolution and its policy implications," Energy Policy, Elsevier, vol. 139(C).
    16. Hongguang Liu & Xiaomei Fan, 2017. "Value-Added-Based Accounting of CO 2 Emissions: A Multi-Regional Input-Output Approach," Sustainability, MDPI, vol. 9(12), pages 1-18, December.
    17. Chen, B. & Yang, Q. & Zhou, Sili & Li, J.S. & Chen, G.Q., 2017. "Urban economy's carbon flow through external trade: Spatial-temporal evolution for Macao," Energy Policy, Elsevier, vol. 110(C), pages 69-78.
    18. Anke Schaffartzik & Dominik Wiedenhofer & Nina Eisenmenger, 2015. "Raw Material Equivalents: The Challenges of Accounting for Sustainability in a Globalized World," Sustainability, MDPI, vol. 7(5), pages 1-26, April.
    19. Wu, X.F. & Chen, G.Q., 2017. "Energy use by Chinese economy: A systems cross-scale input-output analysis," Energy Policy, Elsevier, vol. 108(C), pages 81-90.
    20. Lixiao Zhang & Qiuhong Hu & Fan Zhang, 2014. "Input-Output Modeling for Urban Energy Consumption in Beijing: Dynamics and Comparison," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-11, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:111:y:2017:i:c:p:85-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.