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Factors driving embodied carbon in international trade: a multiregional input–output gravity model

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  • Rosa Duarte
  • Vicente Pinilla
  • Ana Serrano

Abstract

Concerns about the effects and consequences of climate change have notably increased in recent decades. Despite large advances in the understanding of this phenomenon, further research into the determinants of gas emissions is necessary, to shed light on the responsibilities of producers and consumers, and their potential contribution to mitigation strategies. This paper studies the trajectories and determinants of carbon embodied in world trade during a period of 15 years. Our methodology relies on a multiregional input–output model, environmentally extended. Drawing on data from the World Input–Output Database, we estimate embodied emissions in bilateral flows. Then, we assess the determinants of CO2 emissions embodied in trade, combining input–output modelling with trade gravity panel data analysis. This paper offers a methodological approach that explains and quantifies the underlying factors of carbon trade, integrating the production and consumption perspectives and considering the geographical, structural and institutional context of countries.

Suggested Citation

  • Rosa Duarte & Vicente Pinilla & Ana Serrano, 2018. "Factors driving embodied carbon in international trade: a multiregional input–output gravity model," Economic Systems Research, Taylor & Francis Journals, vol. 30(4), pages 545-566, October.
    • Handle: RePEc:taf:ecsysr:v:30:y:2018:i:4:p:545-566
    DOI: 10.1080/09535314.2018.1450226
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    Citations

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    Cited by:

    1. Chong Yin & Yue Liu & Yingxin Cui, 2022. "Virtual Carbon Flow in China’s Capital Economic Circle: A Multi-Regional Input–Output Approach," Sustainability, MDPI, vol. 14(18), pages 1-17, September.
    2. Cheng-Hong Yang & Jen-Chung Shao & Yen-Hsien Liu & Pey-Huah Jou & Yu-Da Lin, 2022. "Application of Fuzzy-Based Support Vector Regression to Forecast of International Airport Freight Volumes," Mathematics, MDPI, vol. 10(14), pages 1-18, July.
    3. Hehua Zhao & Hongwen Chen & Ying Fang & Apei Song, 2022. "Transfer Characteristics of Embodied Carbon Emissions in Export Trade—Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    4. Maeno, Keitaro, 2023. "Identifying critical sectors in the restructuring of low-carbon global supply chains," Energy Economics, Elsevier, vol. 127(PA).
    5. Xia, Wenjun & Chen, Xiaohong & Song, Chao & Pérez-Carrera, Alejo, 2022. "Driving factors of virtual water in international grain trade: A study for belt and road countries," Agricultural Water Management, Elsevier, vol. 262(C).
    6. Yicheol Han & Stephan J. Goetz & Claudia Schmidt, 2021. "Visualizing Spatial Economic Supply Chains to Enhance Sustainability and Resilience," Sustainability, MDPI, vol. 13(3), pages 1-15, February.
    7. Jiajia Li & Yucong Liu & Houjian Li & Abbas Ali Chandio, 2021. "Heterogeneous Driving Factors of Carbon Emissions Embedded in China’s Export: An Application of the LASSO Model," IJERPH, MDPI, vol. 18(19), pages 1-18, October.
    8. Koutchogna Kokou Edem Assogbavi & Stéphane Dées, 2023. "Environmental Policy and the CO2 Emissions Embodied in International Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 507-527, February.
    9. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2019. "Long Term Drivers of Global Virtual Water Trade: A Trade Gravity Approach for 1965–2010," Ecological Economics, Elsevier, vol. 156(C), pages 318-326.
    10. Rivera-Basques, Luisa & Duarte, Rosa & Sánchez-Chóliz, Julio, 2021. "Unequal ecological exchange in the era of global value chains: The case of Latin America," Ecological Economics, Elsevier, vol. 180(C).
    11. 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).
    12. Yingying Hu & Wei Wu, 2022. "Spatiotemporal Variation and Driving Factors of Embodied Carbon in China-G7 Trade," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    13. Shaoqiang Ma & Min Fang & Xin Zhou, 2023. "China’s Embodied Copper Flow from the Demand-Side and Production-Side Perspectives," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    14. Bolea, Lucía & Duarte, Rosa & Hewings, Geoffrey J.D. & Sánchez-Chóliz, Julio, 2021. "Disintegration scenarios in the European Union: A case study of Eastern European economies," Economic Modelling, Elsevier, vol. 95(C), pages 1-12.
    15. Maeno, Keitaro & Tokito, Shohei & Kagawa, Shigemi, 2022. "CO2 mitigation through global supply chain restructuring," Energy Economics, Elsevier, vol. 105(C).
    16. Zhong, Sheng & Goh, Tian & Su, Bin, 2022. "Patterns and drivers of embodied carbon intensity in international exports: The role of trade and environmental policies," Energy Economics, Elsevier, vol. 114(C).

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