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Allocating carbon responsibility: The role of spatial production fragmentation

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  • Zhang, Zengkai
  • Zhang, ZhongXiang
  • Zhu, Kunfu

Abstract

A number of studies have compared national carbon abatement responsibility under different carbon accounting schemes. However, the difficulty of the shift among different national carbon accounting schemes has rarely been quantitatively evaluated in the literature. Spatial production fragmentation over the recent decades has led to geographical separation among the primary inputs supplying regions, carbon emitting regions, and final consuming regions. The purpose of this paper is to reveal the effects of spatial production fragmentation on the shift from production-based to consumption-based and income-based national carbon accounting. Based on both demand- and supply-driven input-output analytical frameworks, this paper analyses the allocation of carbon responsibility for embodied and enabled emissions along production chains over the period 1995–2009. It was found that as much as 25% of embodied emissions and 20% of enabled emissions crossed national borders more than once in 2009. The shift among different carbon accounting schemes is not only related to the magnitude of trade related emissions but also related to border-crossing frequency associated with emissions embodied in or enabled by international trade. The increasingly fragmented production networks complicate the shift from production-based to consumption-based or income-based accounting and weaken the effectiveness of consumption-based or income-based accounting.

Suggested Citation

  • Zhang, Zengkai & Zhang, ZhongXiang & Zhu, Kunfu, 2020. "Allocating carbon responsibility: The role of spatial production fragmentation," Energy Economics, Elsevier, vol. 87(C).
  • Handle: RePEc:eee:eneeco:v:87:y:2020:i:c:s0140988319302725
    DOI: 10.1016/j.eneco.2019.104491
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    4. Magacho, Guilherme & Espagne, Etienne & Godin, Antoine & Mantes, Achilleas & Yilmaz, Devrim, 2023. "Macroeconomic exposure of developing economies to low-carbon transition," World Development, Elsevier, vol. 167(C).
    5. Cahen-Fourot, Louison & Campiglio, Emanuele & Godin, Antoine & Kemp-Benedict, Eric & Trsek, Stefan, 2021. "Capital stranding cascades: The impact of decarbonisation on productive asset utilisation," Energy Economics, Elsevier, vol. 103(C).
    6. Zengkai Zhang & Jiaoyan Li & Dabo Guan, 2023. "Value chain carbon footprints of Chinese listed companies," Nature Communications, Nature, vol. 14(1), pages 1-9, December.
    7. Li, Rongrong & Wang, Qiang & Wang, Xuefeng & Zhou, Yulin & Han, Xinyu & Liu, Yi, 2022. "Germany's contribution to global carbon reduction might be underestimated – A new assessment based on scenario analysis with and without trade," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    8. 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).
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    More about this item

    Keywords

    National carbon accounting; Spatial production fragmentation; Border-crossing frequency; Embodied emissions; Enabled emissions;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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