IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v137y2020ics030142151930655x.html
   My bibliography  Save this article

An extended overview of natural gas use embodied in world economy and supply chains: Policy implications from a time series analysis

Author

Listed:
  • Kan, Siyi
  • Chen, Bin
  • Meng, Jing
  • Chen, Guoqian

Abstract

As an extension of our previous study on natural gas use in world economy (Kan et al., Energy Policy 124 (2019) 215–225), this paper explores policy implications based on a time series analysis uncovering the evolution of natural gas use embodied in global supply chains during 2000-2011. Due to increasing gas supply from gas-rich regions to gas-scarce regions and outsourcing of energy-intensive industries, trade imbalance of embodied natural gas is intensifying globally, corresponding to strengthening gas resource relocation and environmental stress shift. Regarding trade patterns, EU and Russia remain the leading (net) importer and exporter of embodied gas, respectively. And global trade relations are diversifying over time, with more suppliers and recipients joining the international trade. Based on the New Policies Scenario provided by IEA, a long term forecast of embodied gas use illustrates need to prepare for a world with changing energy mix, with respect to growing availability of low-cost natural gas and robust demand growth coming from emerging economies, especially China, who is struggling to fight against air pollution through coal-to-gas switch. Potential room to expand natural gas utilization is also targeted, and the expansion requires coordination of all the agents in global supply chains.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:enepol:v:137:y:2020:i:c:s030142151930655x
    DOI: 10.1016/j.enpol.2019.111068
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142151930655X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2019.111068?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. Balitskiy, Sergey & Bilan, Yuriy & Strielkowski, Wadim & Štreimikienė, Dalia, 2016. "Energy efficiency and natural gas consumption in the context of economic development in the European Union," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 156-168.
    2. Su, Bin & Ang, B.W. & Li, Yingzhu, 2017. "Input-output and structural decomposition analysis of Singapore's carbon emissions," Energy Policy, Elsevier, vol. 105(C), pages 484-492.
    3. 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.
    4. Geng, Jiang-Bo & Ji, Qiang & Fan, Ying, 2014. "A dynamic analysis on global natural gas trade network," Applied Energy, Elsevier, vol. 132(C), pages 23-33.
    5. 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.
    6. Guo, Shan & Jiang, Li & Shen, Geoffrey Q.P., 2019. "Embodied pasture land use change in China 2000-2015: From the perspective of globalization," Land Use Policy, Elsevier, vol. 82(C), pages 476-485.
    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. Li, Jia Shuo & Zhou, H.W. & Meng, Jing & Yang, Q. & Chen, B. & Zhang, Y.Y., 2018. "Carbon emissions and their drivers for a typical urban economy from multiple perspectives: A case analysis for Beijing city," Applied Energy, Elsevier, vol. 226(C), pages 1076-1086.
    9. Zeng, Bo & Li, Chuan, 2016. "Forecasting the natural gas demand in China using a self-adapting intelligent grey model," Energy, Elsevier, vol. 112(C), pages 810-825.
    10. 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.
    11. Richard Wood & Konstantin Stadler & Tatyana Bulavskaya & Stephan Lutter & Stefan Giljum & Arjan De Koning & Jeroen Kuenen & Helmut Schütz & José Acosta-Fernández & Arkaitz Usubiaga & Moana Simas & Olg, 2014. "Global Sustainability Accounting—Developing EXIOBASE for Multi-Regional Footprint Analysis," Sustainability, MDPI, vol. 7(1), pages 1-26, December.
    12. Zhang, Bo & Qiao, H. & Chen, B., 2015. "Embodied energy uses by China’s four municipalities: A study based on multi-regional input–output model," Ecological Modelling, Elsevier, vol. 318(C), pages 138-149.
    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. 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.
    15. Dong, Kangyin & Sun, Renjin & Li, Hui & Liao, Hua, 2018. "Does natural gas consumption mitigate CO2 emissions: Testing the environmental Kuznets curve hypothesis for 14 Asia-Pacific countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 419-429.
    16. Tang, Xu & Zhang, Baosheng & Feng, Lianyong & Snowden, Simon & Höök, Mikael, 2012. "Net oil exports embodied in China's international trade: An input–output analysis," Energy, Elsevier, vol. 48(1), pages 464-471.
    17. 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.
    18. Konstantin Stadler & Richard Wood & Tatyana Bulavskaya & Carl†Johan Södersten & Moana Simas & Sarah Schmidt & Arkaitz Usubiaga & José Acosta†Fernández & Jeroen Kuenen & Martin Bruckner & Stefan, 2018. "EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi†Regional Input†Output Tables," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 502-515, June.
    19. Meng, Jing & Liu, Junfeng & Guo, Shan & Huang, Ye & Tao, Shu, 2016. "The impact of domestic and foreign trade on energy-related PM emissions in Beijing," Applied Energy, Elsevier, vol. 184(C), pages 853-862.
    20. Aydin, Mucahit, 2018. "Natural gas consumption and economic growth nexus for top 10 natural Gas–Consuming countries: A granger causality analysis in the frequency domain," Energy, Elsevier, vol. 165(PB), pages 179-186.
    21. Chai, Jian & Liang, Ting & Lai, Kin Keung & Zhang, Zhe George & Wang, Shouyang, 2018. "The future natural gas consumption in China: Based on the LMDI-STIRPAT-PLSR framework and scenario analysis," Energy Policy, Elsevier, vol. 119(C), pages 215-225.
    22. Su, Bin & Ang, B.W., 2015. "Multiplicative decomposition of aggregate carbon intensity change using input–output analysis," Applied Energy, Elsevier, vol. 154(C), pages 13-20.
    23. Su, Bin & Ang, B.W., 2017. "Multiplicative structural decomposition analysis of aggregate embodied energy and emission intensities," Energy Economics, Elsevier, vol. 65(C), pages 137-147.
    24. 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.
    25. Furuoka, Fumitaka, 2016. "Natural gas consumption and economic development in China and Japan: An empirical examination of the Asian context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 100-115.
    26. Chapman, P. F., 1974. "1. Energy costs: a review of methods," Energy Policy, Elsevier, vol. 2(2), pages 91-103, June.
    27. Bullard, Clark W. & Penner, Peter S. & Pilati, David A., 1978. "Net energy analysis : Handbook for combining process and input-output analysis," Resources and Energy, Elsevier, vol. 1(3), pages 267-313, November.
    28. Gasim, Anwar A., 2015. "The embodied energy in trade: What role does specialization play?," Energy Policy, Elsevier, vol. 86(C), pages 186-197.
    29. Gao, Cuixia & Su, Bin & Sun, Mei & Zhang, Xiaoling & Zhang, Zhonghua, 2018. "Interprovincial transfer of embodied primary energy in China: A complex network approach," Applied Energy, Elsevier, vol. 215(C), pages 792-807.
    30. Stram, Bruce N., 2016. "Key challenges to expanding renewable energy," Energy Policy, Elsevier, vol. 96(C), pages 728-734.
    31. Katsumasa Tanaka & Otávio Cavalett & William J. Collins & Francesco Cherubini, 2019. "Asserting the climate benefits of the coal-to-gas shift across temporal and spatial scales," Nature Climate Change, Nature, vol. 9(5), pages 389-396, May.
    32. 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.
    33. Sarah M. Jordaan & Garvin A. Heath & Jordan Macknick & Brian W. Bush & Ehsan Mohammadi & Dan Ben-Horin & Victoria Urrea & Danielle Marceau, 2017. "Understanding the life cycle surface land requirements of natural gas-fired electricity," Nature Energy, Nature, vol. 2(10), pages 804-812, October.
    34. 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.
    35. Fthenakis, Vasilis & Kim, Hyung Chul, 2009. "Land use and electricity generation: A life-cycle analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1465-1474, August.
    36. Zhang, Bo & Qu, Xue & Meng, Jing & Sun, Xudong, 2017. "Identifying primary energy requirements in structural path analysis: A case study of China 2012," Applied Energy, Elsevier, vol. 191(C), pages 425-435.
    37. 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.
    38. 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.
    39. 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.
    40. Chen, B. & Yang, Q. & Li, J.S. & Chen, G.Q., 2017. "Decoupling analysis on energy consumption, embodied GHG emissions and economic growth — The case study of Macao," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 662-672.
    41. Angel Aguiar & Maksym Chepeliev & Erwin L. Corong & Robert McDougall & Dominique van der Mensbrugghe, 2019. "The GTAP Data Base: Version 10," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(1), pages 1-27, June.
    42. 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. Gómez-Bolaños, Efrén & Ellimäki, Pia & Hurtado-Torres, Nuria E. & Delgado-Márquez, Blanca L., 2022. "Internationalization and environmental innovation in the energy sector: Exploring the differences between multinational enterprises from emerging and developed countries," Energy Policy, Elsevier, vol. 163(C).
    2. Lu, Hao & Fan, Yiwei & Jiao, Liudan & Wu, Ya, 2024. "Assessment and spatial effect of urban agglomeration business environments: A case study of two urban agglomerations in China," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    3. Han, Mengyao & Xiong, Jiao & Yang, Yu, 2023. "Comparisons between direct and embodied natural gas networks: Topology, dependency and vulnerability," Energy, Elsevier, vol. 280(C).
    4. Yuping Jin & Yanbin Yang & Wei Liu, 2022. "Finding Global Liquefied Natural Gas Potential Trade Relations Based on Improved Link Prediction," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    5. Ji, Xi & Liu, Yifang & Wu, Guowei & Su, Pinyi & Ye, Zhen & Feng, Kuishuang, 2022. "Global value chain participation and trade-induced energy inequality," Energy Economics, Elsevier, vol. 112(C).
    6. Huang, Rui & Lv, Guonian, 2021. "The climate economic effect of technology spillover," Energy Policy, Elsevier, vol. 159(C).
    7. Zeng, Huibin & Shao, Bilin & Dai, Hongbin & Yan, Yichuan & Tian, Ning, 2023. "Prediction of fluctuation loads based on GARCH family-CatBoost-CNNLSTM," Energy, Elsevier, vol. 263(PE).
    8. 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).
    9. M. S. Liew & Kamaluddeen Usman Danyaro & Noor Amila Wan Abdullah Zawawi, 2020. "A Comprehensive Guide to Different Fracturing Technologies: A Review," Energies, MDPI, vol. 13(13), pages 1-20, June.
    10. Sun, Xudong & Cheng, Xuelei & Guan, Chenghe & Wu, Xiaofang & Zhang, Bo, 2022. "Economic drivers of global and regional CH4 emission growth from the consumption perspective," Energy Policy, Elsevier, vol. 170(C).
    11. Kan, Siyi & Chen, Bin & Han, Mengyao & Hayat, Tasawar & Alsulami, Hamed & Chen, Guoqian, 2021. "China’s forest land use change in the globalized world economy: Foreign trade and unequal household consumption," Land Use Policy, Elsevier, vol. 103(C).
    12. Kan, Siyi & Chen, Bin & Chen, Guoqian, 2023. "Globalization of forest land use: Increasing threats on climate-vulnerable regions," Land Use Policy, Elsevier, vol. 132(C).

    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. 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.
    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. Kan, Siyi & Chen, Bin & Chen, Guoqian, 2023. "Globalization of forest land use: Increasing threats on climate-vulnerable regions," Land Use Policy, Elsevier, vol. 132(C).
    5. 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.
    6. 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.
    7. 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.
    8. 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).
    9. 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).
    10. 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).
    11. Kan, Siyi & Chen, Bin & Han, Mengyao & Hayat, Tasawar & Alsulami, Hamed & Chen, Guoqian, 2021. "China’s forest land use change in the globalized world economy: Foreign trade and unequal household consumption," Land Use Policy, Elsevier, vol. 103(C).
    12. Han, Mengyao & Xiong, Jiao & Yang, Yu, 2023. "Comparisons between direct and embodied natural gas networks: Topology, dependency and vulnerability," Energy, Elsevier, vol. 280(C).
    13. Ji, Xi & Liu, Yifang & Meng, Jing & Wu, Xudong, 2020. "Global supply chain of biomass use and the shift of environmental welfare from primary exploiters to final consumers," Applied Energy, Elsevier, vol. 276(C).
    14. 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.
    15. Lenzen, Manfred & Dey, Christopher J., 2002. "Economic, energy and greenhouse emissions impacts of some consumer choice, technology and government outlay options," Energy Economics, Elsevier, vol. 24(4), pages 377-403, July.
    16. Zhu, Bangzhu & Su, Bin & Li, Yingzhu, 2018. "Input-output and structural decomposition analysis of India’s carbon emissions and intensity, 2007/08 – 2013/14," Applied Energy, Elsevier, vol. 230(C), pages 1545-1556.
    17. 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.
    18. 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.
    19. 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.
    20. Manfred Lenzen, 2001. "A Generalized Input-Output Multiplier Calculus for Australia," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 65-92.

    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:137:y:2020:i:c:s030142151930655x. 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.