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Multi-region input–output analysis of CO2 emissions embodied in trade: The feedback effects

  • Su, Bin
  • Ang, B.W.
Registered author(s):

    Energy-related CO2 emissions embodied in international trade have been widely studied by researchers using the environmental input–output framework. Despite the increasing interest in using the multi-regional input–output (MRIO) model by researchers, few studies have looked into the mechanism of feedback effects. We introduce a method called the stepwise distribution of emissions embodied in trade (SWD-EET) to reveal how the emissions embodied in trade are absorbed by a country's final demands through a series of allocation steps. A country's indirect absorption patterns and its indirect trade balance of emissions from bilateral trade with other countries are also studied based on the proposed method. An empirical study using the data of Asian economies shows significant differences in the “consumption-based” emission estimates for some economies due to feedback effects through international trade. The differences can be largely captured by the first step or the first two steps of the adjustment procedure in the SWD-EET analysis. Other findings and some recommendations are also presented.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0921800911003570
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    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 71 (2011)
    Issue (Month): C ()
    Pages: 42-53

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    Handle: RePEc:eee:ecolec:v:71:y:2011:i:c:p:42-53
    DOI: 10.1016/j.ecolecon.2011.08.024
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

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    1. 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.
    2. 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.
    3. 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.
    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. Dong, Yanli & Ishikawa, Masanobu & Liu, Xianbing & Wang, Can, 2010. "An analysis of the driving forces of CO2 emissions embodied in Japan-China trade," Energy Policy, Elsevier, vol. 38(11), pages 6784-6792, November.
    6. Liu, Xianbing & Ishikawa, Masanobu & Wang, Can & Dong, Yanli & Liu, Wenling, 2010. "Analyses of CO2 emissions embodied in Japan-China trade," Energy Policy, Elsevier, vol. 38(3), pages 1510-1518, March.
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    11. 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.
    12. 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 262-71, August.
    13. 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.
    14. Robbie Andrew & Glen Peters & James Lennox, 2009. "Approximation And Regional Aggregation In Multi-Regional Input-Output Analysis For National Carbon Footprint Accounting," Economic Systems Research, Taylor & Francis Journals, vol. 21(3), pages 311-335.
    15. 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.
    16. 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.
    17. 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.
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