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Input-output analysis of carbon emissions embodied in China-Japan trade

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  • Yuhuan Zhao
  • Song Wang
  • Jiaqin Yang
  • Zhonghua Zhang
  • Ya Liu

Abstract

Energy-related CO 2 emissions embodied in international trade have been widely studied by researchers all over the world. By using the bilateral trade input--output (BTIO) approach, this study investigates the CO 2 emissions embodied in China--Japan trade during 1995--2009 and attempts to identify the driving forces for the change in CO 2 emissions embodied in China’s exports to Japan during that period by using structural decomposition analysis (SDA). Result shows that CO 2 emissions embodied in China’s exports increased by about 100% from 1995 to 2009, whereas those embodied in China’s imports increased by about 500% during the same period. Result of this research also reveals that the scale effect had a large influence on the increase in CO 2 emissions embodied in China--Japan trade. The technical effect greatly decreased CO 2 emissions embodied in China’s exports to Japan, but obviously increased those embodied in imports. The influence of the structural effect was relatively small and insignificant in the change of CO 2 emissions embodied in China’s exports to Japan, but was notable in the change of emissions embodied in imports.

Suggested Citation

  • Yuhuan Zhao & Song Wang & Jiaqin Yang & Zhonghua Zhang & Ya Liu, 2016. "Input-output analysis of carbon emissions embodied in China-Japan trade," Applied Economics, Taylor & Francis Journals, vol. 48(16), pages 1515-1529, April.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:16:p:1515-1529
    DOI: 10.1080/00036846.2015.1102845
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    3. Haoran Wang & Toshiyuki Fujita, 2023. "A Review of Research on Embodied Carbon in International Trade," Sustainability, MDPI, vol. 15(10), pages 1-15, May.
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    5. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    6. Zhao, Yuhuan & Liu, Ya & Qiao, Xiaoyong & Wang, Song & Zhang, Zhonghua & Zhang, Yongfeng & Li, Hao, 2018. "Tracing value added in gross exports of China: Comparison with the USA, Japan, Korea, and India based on generalized LMDI," China Economic Review, Elsevier, vol. 49(C), pages 24-44.
    7. Wang, Zhaohua & Li, Yiming & Cai, Hailin & Yang, Yuantao & Wang, Bo, 2019. "Regional difference and drivers in China's carbon emissions embodied in internal trade," Energy Economics, Elsevier, vol. 83(C), pages 217-228.
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    9. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How does ICT agglomeration affect carbon emissions? The case of Yangtze River Delta urban agglomeration in China," Energy Economics, Elsevier, vol. 111(C).

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