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An empirical analysis of the role of China’s exports on CO2 emissions

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  • Michieka, Nyakundi M.
  • Fletcher, Jerald
  • Burnett, Wesley

Abstract

China is one of the world’s most rapidly growing countries and the largest consumer of energy in the world. As a result, China’s pollution emissions almost doubled from 2002 to 2007, and in 2006 it surpassed the United States to become the world’s top carbon dioxide emitter. Understanding the sources of emissions is essential towards designing policies aimed at curbing carbon emissions in China. The surge in China’s exports has been partially blamed for this increase in emissions. To understand the sources of emissions, this study uses a vector autoregression model to examine the relationship among exports, CO2 emissions, coal consumption and trade openness in China for the years 1970–2010. The study uses a modified version of Granger Causality developed by Toda and Yamamoto [56]. The main findings within the study indicate: (1) Granger Causality running from exports to emissions; (2) Granger Causality running from coal consumption to exports; and (3) GDP determines future variability in exports and CO2 emissions. Results suggest that governmental policies aimed at controlling coal consumption could affect CO2 emissions and exports. Results from this study should assist in formulating policies to mitigate both CO2 emissions and coal consumption.

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  • Michieka, Nyakundi M. & Fletcher, Jerald & Burnett, Wesley, 2013. "An empirical analysis of the role of China’s exports on CO2 emissions," Applied Energy, Elsevier, vol. 104(C), pages 258-267.
  • Handle: RePEc:eee:appene:v:104:y:2013:i:c:p:258-267
    DOI: 10.1016/j.apenergy.2012.10.044
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    2. Shahzad, Syed Jawad Hussain & Kumar, Ronald Ravinesh & Zakaria, Muhammad & Hurr, Maryam, 2017. "Carbon emission, energy consumption, trade openness and financial development in Pakistan: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 185-192.
    3. Liu, Liwei & Zong, Haijing & Zhao, Erdong & Chen, Chuxiang & Wang, Jianzhou, 2014. "Can China realize its carbon emission reduction goal in 2020: From the perspective of thermal power development," Applied Energy, Elsevier, vol. 124(C), pages 199-212.
    4. 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.
    5. Zhao, Xueting & Wesley Burnett, J. & Lacombe, Donald J., 2015. "Province-level convergence of China’s carbon dioxide emissions," Applied Energy, Elsevier, vol. 150(C), pages 286-295.
    6. Liu, Yu & Meng, Bo & Hubacek, Klaus & Xue, Jinjun & Feng, Kuishuang & Gao, Yuning, 2016. "‘Made in China’: A reevaluation of embodied CO2 emissions in Chinese exports using firm heterogeneity information," Applied Energy, Elsevier, vol. 184(C), pages 1106-1113.
    7. Su, Bin & Ang, B.W., 2014. "Input–output analysis of CO2 emissions embodied in trade: A multi-region model for China," Applied Energy, Elsevier, vol. 114(C), pages 377-384.
    8. Xu, Bin & Lin, Boqiang, 2016. "Assessing CO2 emissions in China’s iron and steel industry: A dynamic vector autoregression model," Applied Energy, Elsevier, vol. 161(C), pages 375-386.
    9. Zhao, Hongyan & Zhang, Qiang & Huo, Hong & Lin, Jintai & Liu, Zhu & Wang, Haikun & Guan, Dabo & He, Kebin, 2016. "Environment-economy tradeoff for Beijing–Tianjin–Hebei’s exports," Applied Energy, Elsevier, vol. 184(C), pages 926-935.
    10. Adewuyi, Adeolu O., 2016. "Effects of public and private expenditures on environmental pollution: A dynamic heterogeneous panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 489-506.
    11. Xie, Xuan & Shao, Shuai & Lin, Boqiang, 2016. "Exploring the driving forces and mitigation pathways of CO2 emissions in China’s petroleum refining and coking industry: 1995–2031," Applied Energy, Elsevier, vol. 184(C), pages 1004-1015.
    12. 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.

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