IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v38y2010i8p3957-3964.html
   My bibliography  Save this article

Energy embodied in the international trade of China: An energy input-output analysis

Author

Listed:
  • Liu, Hongtao
  • Xi, Youmin
  • Guo, Ju'e
  • Li, Xia

Abstract

Growing international trade has not only positively affected the People's Republic of China's (China's) economic development, but also expanded the exportation of energy embodied in goods during their production. This energy flow out will pose risks to China's rational utilization of natural resources as well as environmental protection. In this paper, we evaluate the energy embodied in goods produced in China during 1992-2005 and use input-output structural decomposition analysis to identify five key factors causing the changes of energy embodied in exports. (Direct primary energy efficiency, primary energy consumption structure, structure of intermediate inputs, structure of exports, and scale of exports.) For the three sub-periods of 1992-1997, 1997-2002, and 2002-2005, results show that China is a net exporter of energy, and the energy embodied in exports tends to increase over time. The expanding total volume of exports and increasing exports of energy-intensive goods tend to enlarge the energy embodied in exports within all three sub-periods, but these driving forces were offset by a considerable improvement of energy efficiency and changes in primary energy consumption structure from 1992 to 2002 and the effects of structure of intermediate input only in the sub-period from 1992 to 1997. From 2002 to 2005, the sharp augmentation of energy embodied in exports was driven by all the five factors. Our research has practical implications for the Chinese economy. Results of this study suggest that the energy embodied in trade should receive special attentions in energy policies design to limit the energy resource out-flow and pollution generation.

Suggested Citation

  • Liu, Hongtao & Xi, Youmin & Guo, Ju'e & Li, Xia, 2010. "Energy embodied in the international trade of China: An energy input-output analysis," Energy Policy, Elsevier, vol. 38(8), pages 3957-3964, August.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:3957-3964
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301-4215(10)00182-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    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. Liao, Hua & Fan, Ying & Wei, Yi-Ming, 2007. "What induced China's energy intensity to fluctuate: 1997-2006?," Energy Policy, Elsevier, vol. 35(9), pages 4640-4649, September.
    2. Weber, Christopher L., 2009. "Measuring structural change and energy use: Decomposition of the US economy from 1997 to 2002," Energy Policy, Elsevier, vol. 37(4), pages 1561-1570, April.
    3. Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
    4. Wu, Rong-Hwa & Chen, Chia-Yon, 1990. "On the application of input-output analysis to energy issues," Energy Economics, Elsevier, vol. 12(1), pages 71-76, January.
    5. 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.
    6. Liu, Na & Ang, B.W., 2007. "Factors shaping aggregate energy intensity trend for industry: Energy intensity versus product mix," Energy Economics, Elsevier, vol. 29(4), pages 609-635, July.
    7. 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.
    8. 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.
    9. Llop, Maria, 2007. "Economic structure and pollution intensity within the environmental input-output framework," Energy Policy, Elsevier, vol. 35(6), pages 3410-3417, June.
    10. Liang, Qiao-Mei & Fan, Ying & Wei, Yi-Ming, 2007. "Multi-regional input-output model for regional energy requirements and CO2 emissions in China," Energy Policy, Elsevier, vol. 35(3), pages 1685-1700, March.
    11. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    12. Ang, B.W. & Liu, F.L., 2001. "A new energy decomposition method: perfect in decomposition and consistent in aggregation," Energy, Elsevier, vol. 26(6), pages 537-548.
    13. Jiahua Pan & Jonathan Phillips & Ying Chen, 2008. "China's balance of emissions embodied in trade: approaches to measurement and allocating international responsibility," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 24(2), pages 354-376, Summer.
    14. Casler, Stephen & Hannon, Bruce, 1989. "Readjustment potentials in industrial energy efficiency and structure," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 93-108, July.
    15. Thi Anh Tuyet, Nguyen & Ishihara, Keiichi N., 2006. "Analysis of changing hidden energy flow in Vietnam," Energy Policy, Elsevier, vol. 34(14), pages 1883-1888, September.
    16. Lenzen, Manfred & Dey, Christopher & Foran, Barney, 2004. "Energy requirements of Sydney households," Ecological Economics, Elsevier, vol. 49(3), pages 375-399, July.
    17. Fan, Ying & Liu, Lan-Cui & Wu, Gang & Tsai, Hsien-Tang & Wei, Yi-Ming, 2007. "Changes in carbon intensity in China: Empirical findings from 1980-2003," Ecological Economics, Elsevier, vol. 62(3-4), pages 683-691, May.
    18. Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
    19. Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
    20. Cohen, Claude & Lenzen, Manfred & Schaeffer, Roberto, 2005. "Energy requirements of households in Brazil," Energy Policy, Elsevier, vol. 33(4), pages 555-562, March.
    21. 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.
    22. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    23. Li, You & Hewitt, C.N., 2008. "The effect of trade between China and the UK on national and global carbon dioxide emissions," Energy Policy, Elsevier, vol. 36(6), pages 1907-1914, June.
    24. Bullard, Clark W. & Herendeen, Robert A., 1975. "The energy cost of goods and services," Energy Policy, Elsevier, vol. 3(4), pages 268-278, December.
    25. Ma, Chunbo & Stern, David I., 2008. "China's changing energy intensity trend: A decomposition analysis," Energy Economics, Elsevier, vol. 30(3), pages 1037-1053, May.
    26. Pachauri, Shonali & Spreng, Daniel, 2002. "Direct and indirect energy requirements of households in India," Energy Policy, Elsevier, vol. 30(6), pages 511-523, May.
    27. 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.
    28. Chang, Yih F. & Lewis, Charles & Lin, Sue J., 2008. "Comprehensive evaluation of industrial CO2 emission (1989-2004) in Taiwan by input-output structural decomposition," Energy Policy, Elsevier, vol. 36(7), pages 2471-2480, July.
    29. Polenske, Karen R. & McMichael, Francis C., 2002. "A Chinese cokemaking process-flow model for energy and environmental analyses," Energy Policy, Elsevier, vol. 30(10), pages 865-883, August.
    30. Murthy, N. S. & Panda, Manoj & Parikh, Jyoti, 1997. "Economic development, poverty reduction and carbon emissions in India," Energy Economics, Elsevier, vol. 19(3), pages 327-354, July.
    31. Hawdon, David & Pearson, Peter, 1995. "Input-output simulations of energy, environment, economy interactions in the UK," Energy Economics, Elsevier, vol. 17(1), pages 73-86, January.
    32. 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.
    33. 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.
    34. 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.
    35. Wood, Richard & Lenzen, Manfred, 2009. "Structural path decomposition," Energy Economics, Elsevier, vol. 31(3), pages 335-341, May.
    36. Limmeechokchai, Bundit & Suksuntornsiri, Pawinee, 2007. "Embedded energy and total greenhouse gas emissions in final consumptions within Thailand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(2), pages 259-281, February.
    37. 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.
    38. J. W. Sun, 1999. "Decomposition of Aggregate CO2 Emissions in the OECD: 1960-1995," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 147-155.
    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. Liu, Hong-Tao & Guo, Ju-E & Qian, Dong & Xi, You-Min, 2009. "Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input-output analysis," Energy Policy, Elsevier, vol. 37(8), pages 3194-3204, August.
    2. 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.
    3. 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.
    4. Misato Sato, 2014. "Embodied Carbon In Trade: A Survey Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 831-861, December.
    5. Zhong, Sheng, 2018. "Structural decompositions of energy consumption between 1995 and 2009: Evidence from WIOD," Energy Policy, Elsevier, vol. 122(C), pages 655-667.
    6. Zhang, Bo & Chen, G.Q., 2010. "Methane emissions by Chinese economy: Inventory and embodiment analysis," Energy Policy, Elsevier, vol. 38(8), pages 4304-4316, August.
    7. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    8. 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.
    9. 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.
    10. Du, Huibin & Guo, Jianghong & Mao, Guozhu & Smith, Alexander M. & Wang, Xuxu & Wang, Yuan, 2011. "CO2 emissions embodied in China-US trade: Input-output analysis based on the emergy/dollar ratio," Energy Policy, Elsevier, vol. 39(10), pages 5980-5987, October.
    11. Li, Huanan & Wei, Yi-Ming, 2015. "Is it possible for China to reduce its total CO2 emissions?," Energy, Elsevier, vol. 83(C), pages 438-446.
    12. Chai, Jian & Guo, Ju-E & Wang, Shou-Yang & Lai, Kin Keung, 2009. "Why does energy intensity fluctuate in China?," Energy Policy, Elsevier, vol. 37(12), pages 5717-5731, December.
    13. Lixiao Zhang & Qiuhong Hu & Fan Zhang, 2014. "Input-Output Modeling for Urban Energy Consumption in Beijing: Dynamics and Comparison," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-11, March.
    14. Haoran Wang & Toshiyuki Fujita, 2023. "A Review of Research on Embodied Carbon in International Trade," Sustainability, MDPI, vol. 15(10), pages 1-15, May.
    15. Xiao, Hao & Sun, Ke-Juan & Bi, Hui-Min & Xue, Jin-Jun, 2019. "Changes in carbon intensity globally and in countries: Attribution and decomposition analysis," Applied Energy, Elsevier, vol. 235(C), pages 1492-1504.
    16. Cellura, Maurizio & Longo, Sonia & Mistretta, Marina, 2012. "Application of the Structural Decomposition Analysis to assess the indirect energy consumption and air emission changes related to Italian households consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1135-1145.
    17. Weber, Christopher L., 2009. "Measuring structural change and energy use: Decomposition of the US economy from 1997 to 2002," Energy Policy, Elsevier, vol. 37(4), pages 1561-1570, April.
    18. 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.
    19. repec:eco:journ2:2017-04-31 is not listed on IDEAS
    20. Tarancon, Miguel Angel & Del Río, Pablo, 2012. "Assessing energy-related CO2 emissions with sensitivity analysis and input-output techniques," Energy, Elsevier, vol. 37(1), pages 161-170.
    21. 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.

    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:38:y:2010:i:8:p:3957-3964. 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.