IDEAS home Printed from https://ideas.repec.org/p/lsg/lsgwps/wp77.html
   My bibliography  Save this paper

Embodied carbon in trade: a survey of the empirical literature

Author

Listed:
  • Misato Sato

Abstract

Measuring consumption-based emissions and the implied embodied emissions in trade (EET) has seen a resurgence in recent years, with a growing number of papers reporting country-level embodied emissions in imports and exports, as well as the net balance of embodied emissions in trade. This paper compares the quantitative results reported across studies and discusses methodological and data issues that contribute to the variability of results. In doing so, it assess the extent to which this literature overall provides a consistent empirical understanding of embodied carbon flows. Based on the assessment of the ranges of EET flows, it discusses the strengths of the conclusions drawn from the empirical literature on the various policy issues that surround the climate and trade nexus.

Suggested Citation

  • Misato Sato, 2012. "Embodied carbon in trade: a survey of the empirical literature," GRI Working Papers 77, Grantham Research Institute on Climate Change and the Environment.
  • Handle: RePEc:lsg:lsgwps:wp77
    as

    Download full text from publisher

    File URL: http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2012/04/WP77-embodied-carbon-in-trade.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jan Oosterhaven & Dirk Stelder & Satoshi Inomata, 2008. "Estimating International Interindustry Linkages: Non-survey Simulations of the Asian-Pacific Economy," Economic Systems Research, Taylor & Francis Journals, vol. 20(4), pages 395-414.
    2. Wiedmann, Thomas & Lenzen, Manfred, 2007. "On the conversion between local and global hectares in Ecological Footprint analysis," Ecological Economics, Elsevier, vol. 60(4), pages 673-677, February.
    3. Aaditya Mattoo & Arvind Subramanian & Dominique van der Mensbrugghe & Jianwu He, 2009. "Reconciling Climate Change and Trade Policy," Working Papers 189, Center for Global Development.
    4. Su, Bin & Huang, H.C. & Ang, B.W. & Zhou, P., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation," Energy Economics, Elsevier, vol. 32(1), pages 166-175, January.
    5. Ferng, Jiun-Jiun, 2003. "Allocating the responsibility of CO2 over-emissions from the perspectives of benefit principle and ecological deficit," Ecological Economics, Elsevier, vol. 46(1), pages 121-141, August.
    6. Lenzen, Manfred & Murray, Joy & Sack, Fabian & Wiedmann, Thomas, 2007. "Shared producer and consumer responsibility -- Theory and practice," Ecological Economics, Elsevier, vol. 61(1), pages 27-42, February.
    7. Lenzen, Manfred, 1998. "Primary energy and greenhouse gases embodied in Australian final consumption: an input-output analysis," Energy Policy, Elsevier, vol. 26(6), pages 495-506, May.
    8. Thomas Wiedmann & Richard Wood & Jan Minx & Manfred Lenzen & Dabo Guan & Rocky Harris, 2010. "A Carbon Footprint Time Series Of The Uk - Results From A Multi-Region Input-Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 19-42.
    9. Harry Wilting & Kees Vringer, 2009. "CARBON AND LAND USE ACCOUNTING FROM A PRODUCER'S AND A cONSUMER'S PERSPECTIVE - AN EMPIRICAL EXAMINATION COVERING THE WORLD," Economic Systems Research, Taylor & Francis Journals, vol. 21(3), pages 291-310.
    10. Weber, Christopher L. & Peters, Glen P. & Guan, Dabo & Hubacek, Klaus, 2008. "The contribution of Chinese exports to climate change," Energy Policy, Elsevier, vol. 36(9), pages 3572-3577, September.
    11. St�phanie Monjon & Philippe Quirion, 2011. "A border adjustment for the EU ETS: reconciling WTO rules and capacity to tackle carbon leakage," Climate Policy, Taylor & Francis Journals, vol. 11(5), pages 1212-1225, September.
    12. Manfred Lenzen & Lise-Lotte Pade & Jesper Munksgaard, 2004. "CO2 Multipliers in Multi-region Input-Output Models," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 391-412.
    13. Bullard, Clark W. & Herendeen, Robert A., 1975. "The energy cost of goods and services," Energy Policy, Elsevier, vol. 3(4), pages 268-278, December.
    14. M. S. Common & U. Salma, 1992. "Accounting for Australian Carbon Dioxide Emissions," The Economic Record, The Economic Society of Australia, vol. 68(1), pages 31-42, March.
    15. Kondo, Y. & Moriguchi, Y. & Shimizu, H., 1998. "CO2 Emissions in Japan: Influences of imports and exports," Applied Energy, Elsevier, vol. 59(2-3), pages 163-174, February.
    16. Ayres, Robert U & Kneese, Allen V, 1969. "Production , Consumption, and Externalities," American Economic Review, American Economic Association, vol. 59(3), pages 282-297, June.
    17. Weber, Christopher L. & Peters, Glen P., 2009. "Climate change policy and international trade: Policy considerations in the US," Energy Policy, Elsevier, vol. 37(2), pages 432-440, February.
    18. Koen De Backer & Norihiko Yamano, 2007. "The Measurement of Globalisation using International Input-Output Tables," OECD Science, Technology and Industry Working Papers 2007/8, OECD Publishing.
    19. Dong Guo & Colin Webb & Norihiko Yamano, 2009. "Towards Harmonised Bilateral Trade Data for Inter-Country Input-Output Analyses: Statistical Issues," OECD Science, Technology and Industry Working Papers 2009/4, OECD Publishing.
    20. Jean-Martial Breuil, 1992. "Input-Output Analysis and Pollutant Emissions in France," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 173-184.
    21. Andreas Maurer & Christophe Degain, 2012. "Globalization And Trade Flows: What You See Is Not What You Get!," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-27.
    22. Glen Peters & Robbie Andrew & James Lennox, 2011. "Constructing An Environmentally-Extended Multi-Regional Input-Output Table Using The Gtap Database," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 131-152.
    23. Wiedmann, Thomas & Wilting, Harry C. & Lenzen, Manfred & Lutter, Stephan & Palm, Viveka, 2011. "Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis," Ecological Economics, Elsevier, vol. 70(11), pages 1937-1945, September.
    24. repec:dau:papers:123456789/10971 is not listed on IDEAS
    25. Mark De Haan, 2001. "A Structural Decomposition Analysis of Pollution in the Netherlands," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 181-196.
    26. repec:dau:papers:123456789/7940 is not listed on IDEAS
    27. Lee, Kihoon & Oh, Wankeun, 2006. "Analysis of CO2 emissions in APEC countries: A time-series and a cross-sectional decomposition using the log mean Divisia method," Energy Policy, Elsevier, vol. 34(17), pages 2779-2787, November.
    28. Weisz, Helga & Duchin, Faye, 2006. "Physical and monetary input-output analysis: What makes the difference?," Ecological Economics, Elsevier, vol. 57(3), pages 534-541, May.
    29. Tao Wang & Jim Watson, 2008. "China's carbon emissions and international trade: implications for post-2012 policy," Climate Policy, Taylor & Francis Journals, vol. 8(6), pages 577-587, November.
    30. Munksgaard, Jesper & Pedersen, Klaus Alsted, 2001. "CO2 accounts for open economies: producer or consumer responsibility?," Energy Policy, Elsevier, vol. 29(4), pages 327-334, March.
    31. Lenzen, Manfred & Murray, Shauna A., 2001. "A modified ecological footprint method and its application to Australia," Ecological Economics, Elsevier, vol. 37(2), pages 229-255, May.
    32. Shui, Bin & Harriss, Robert C., 2006. "The role of CO2 embodiment in US-China trade," Energy Policy, Elsevier, vol. 34(18), pages 4063-4068, December.
    33. Rodrigues, Joao & Domingos, Tiago & Giljum, Stefan & Schneider, Francois, 2006. "Designing an indicator of environmental responsibility," Ecological Economics, Elsevier, vol. 59(3), pages 256-266, September.
    34. Maenpaa, Ilmo & Siikavirta, Hanne, 2007. "Greenhouse gases embodied in the international trade and final consumption of Finland: An input-output analysis," Energy Policy, Elsevier, vol. 35(1), pages 128-143, January.
    35. Common, M. S. & Salma, U., 1992. "Accounting for changes in Australian carbon dioxide emissions," Energy Economics, Elsevier, vol. 14(3), pages 217-225, July.
    36. repec:dau:papers:123456789/10122 is not listed on IDEAS
    37. Machado, Giovani & Schaeffer, Roberto & Worrell, Ernst, 2001. "Energy and carbon embodied in the international trade of Brazil: an input-output approach," Ecological Economics, Elsevier, vol. 39(3), pages 409-424, December.
    38. Li Hong & Pei Dong, Zhang & Chunyu, He & Wang Gang, 2007. "Evaluating the effects of embodied energy in international trade on ecological footprint in China," Ecological Economics, Elsevier, vol. 62(1), pages 136-148, April.
    39. Kainuma, M. & Matsuoka, Y. & Morita, T., 2000. "Estimation of embodied CO2 emissions by general equilibrium model," European Journal of Operational Research, Elsevier, vol. 122(2), pages 392-404, April.
    40. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
    41. Lin, Boqiang & Sun, Chuanwang, 2010. "Evaluating carbon dioxide emissions in international trade of China," Energy Policy, Elsevier, vol. 38(1), pages 613-621, January.
    42. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    43. Herendeen, Robert A., 1978. "Input-output techniques and energy cost of commodities," Energy Policy, Elsevier, vol. 6(2), pages 162-165, June.
    44. Bastianoni, Simone & Pulselli, Federico Maria & Tiezzi, Enzo, 2004. "The problem of assigning responsibility for greenhouse gas emissions," Ecological Economics, Elsevier, vol. 49(3), pages 253-257, July.
    45. Wyckoff, Andrew W. & Roop, Joseph M., 1994. "The embodiment of carbon in imports of manufactured products : Implications for international agreements on greenhouse gas emissions," Energy Policy, Elsevier, vol. 22(3), pages 187-194, March.
    46. Ben Lockwood & John Whalley, 2010. "Carbon‐motivated Border Tax Adjustments: Old Wine in Green Bottles?," The World Economy, Wiley Blackwell, vol. 33(6), pages 810-819, June.
    47. Satoshi Nakano & Asako Okamura & Norihisa Sakurai & Masayuki Suzuki & Yoshiaki Tojo & Norihiko Yamano, 2009. "The Measurement of CO2 Embodiments in International Trade: Evidence from the Harmonised Input-Output and Bilateral Trade Database," OECD Science, Technology and Industry Working Papers 2009/3, OECD Publishing.
    48. Maurer, Andreas & Degain, Christophe, 2010. "Globalization and trade flows: What you see is not what you get!," WTO Staff Working Papers ERSD-2010-12, World Trade Organization (WTO), Economic Research and Statistics Division.
    49. Weber, Christopher L. & Matthews, H. Scott, 2008. "Quantifying the global and distributional aspects of American household carbon footprint," Ecological Economics, Elsevier, vol. 66(2-3), pages 379-391, June.
    50. Muradian, Roldan & O'Connor, Martin & Martinez-Alier, Joan, 2002. "Embodied pollution in trade: estimating the 'environmental load displacement' of industrialised countries," Ecological Economics, Elsevier, vol. 41(1), pages 51-67, April.
    51. Druckman, A. & Bradley, P. & Papathanasopoulou, E. & Jackson, T., 2008. "Measuring progress towards carbon reduction in the UK," Ecological Economics, Elsevier, vol. 66(4), pages 594-604, July.
    52. Wright, David J., 1974. "3. Good and services: an input-output analysis," Energy Policy, Elsevier, vol. 2(4), pages 307-315, December.
    53. Aichele, Rahel & Felbermayr, Gabriel, 2010. "Kyoto and the carbon content of trade," FZID Discussion Papers 10-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    54. Wood, Richard & Lenzen, Manfred, 2009. "Structural path decomposition," Energy Economics, Elsevier, vol. 31(3), pages 335-341, May.
    55. Manfred Lenzen & Richard Wood & Thomas Wiedmann, 2010. "Uncertainty Analysis For Multi-Region Input-Output Models - A Case Study Of The Uk'S Carbon Footprint," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 43-63.
    56. Wichelns, Dennis, 2001. "The role of `virtual water' in efforts to achieve food security and other national goals, with an example from Egypt," Agricultural Water Management, Elsevier, vol. 49(2), pages 131-151, July.
    57. Druckman, Angela & Jackson, Tim, 2010. "The bare necessities: How much household carbon do we really need?," Ecological Economics, Elsevier, vol. 69(9), pages 1794-1804, July.
    58. Common, M S & Salma, U, 1992. "Accounting for Australian Carbon Dioxide Emissions," The Economic Record, The Economic Society of Australia, vol. 68(200), pages 31-42, March.
    59. Nadim Ahmad & Andrew Wyckoff, 2003. "Carbon Dioxide Emissions Embodied in International Trade of Goods," OECD Science, Technology and Industry Working Papers 2003/15, OECD Publishing.
    60. Su, Bin & Ang, B.W., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of spatial aggregation," Ecological Economics, Elsevier, vol. 70(1), pages 10-18, November.
    61. 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.
    62. Manfred Lenzen, 2011. "Aggregation Versus Disaggregation In Input-Output Analysis Of The Environment," Economic Systems Research, Taylor & Francis Journals, vol. 23(1), pages 73-89.
    Full references (including those not matched with items on IDEAS)

    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. Guo, Ju’e & Zhang, Zengkai & Meng, Lei, 2012. "China’s provincial CO2 emissions embodied in international and interprovincial trade," Energy Policy, Elsevier, vol. 42(C), pages 486-497.
    2. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
    3. Wiedmann, Thomas, 2009. "A first empirical comparison of energy Footprints embodied in trade -- MRIO versus PLUM," Ecological Economics, Elsevier, vol. 68(7), pages 1975-1990, May.
    4. Sato, Misato, 2014. "Product level embodied carbon flows in bilateral trade," Ecological Economics, Elsevier, vol. 105(C), pages 106-117.
    5. Boya Zhang & Shukuan Bai & Yadong Ning & Tao Ding & Yan Zhang, 2020. "Emission Embodied in International Trade and Its Responsibility from the Perspective of Global Value Chain: Progress, Trends, and Challenges," Sustainability, MDPI, vol. 12(8), pages 1-26, April.
    6. 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.
    7. 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.
    8. Muñoz, Pablo & Steininger, Karl W., 2010. "Austria's CO2 responsibility and the carbon content of its international trade," Ecological Economics, Elsevier, vol. 69(10), pages 2003-2019, August.
    9. Banie Naser Outchiri & Jie He, 2020. "Technical gap, trade partners and product mix evolution: how trading with China affects global CO2 emissions," Cahiers de recherche 20-07, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    10. Zhang, Zhonghua & Zhao, Yuhuan & Su, Bin & Zhang, Yongfeng & Wang, Song & Liu, Ya & Li, Hao, 2017. "Embodied carbon in China’s foreign trade: An online SCI-E and SSCI based literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 492-510.
    11. Chen, G.Q. & Chen, Z.M., 2011. "Greenhouse gas emissions and natural resources use by the world economy: Ecological input–output modeling," Ecological Modelling, Elsevier, vol. 222(14), pages 2362-2376.
    12. Chen, G.Q. & Zhang, Bo, 2010. "Greenhouse gas emissions in China 2007: Inventory and input-output analysis," Energy Policy, Elsevier, vol. 38(10), pages 6180-6193, October.
    13. Xia, Yan & Fan, Ying & Yang, Cuihong, 2015. "Assessing the impact of foreign content in China’s exports on the carbon outsourcing hypothesis," Applied Energy, Elsevier, vol. 150(C), pages 296-307.
    14. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    15. Xu, Ming & Li, Ran & Crittenden, John C. & Chen, Yongsheng, 2011. "CO2 emissions embodied in China's exports from 2002 to 2008: A structural decomposition analysis," Energy Policy, Elsevier, vol. 39(11), pages 7381-7388.
    16. Maria Csutora & Zs�fia Vetőn� m�zner, 2014. "Proposing a beneficiary-based shared responsibility approach for calculating national carbon accounts during the post-Kyoto era," Climate Policy, Taylor & Francis Journals, vol. 14(5), pages 599-616, September.
    17. 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).
    18. Wencheng Zhang & Shuijun Peng, 2016. "Analysis on CO 2 Emissions Transferred from Developed Economies to China through Trade," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(2), pages 68-89, March.
    19. Chang, Ning, 2013. "Sharing responsibility for carbon dioxide emissions: A perspective on border tax adjustments," Energy Policy, Elsevier, vol. 59(C), pages 850-856.
    20. Zhu, Yongbin & Shi, Yajuan & Wu, Jing & Wu, Leying & Xiong, Wen, 2018. "Exploring the Characteristics of CO2 Emissions Embodied in International Trade and the Fair Share of Responsibility," Ecological Economics, Elsevier, vol. 146(C), pages 574-587.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:lsg:lsgwps:wp77. 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: The GRI Administration (email available below). General contact details of provider: https://edirc.repec.org/data/grlseuk.html .

    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.