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Product Level Emission Intensities: Measurement and Application

Author

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  • Kwon, Ohyun

    (Drexel University School of Economics)

  • Zhao, Hao

    (School of Environmental and Natural Resources, and Institute of Ecological Civilization, Renmin University of China)

  • Zhao, Min Qiang

    (MOE Key Laboratory of Econometrics, the Wang Yanan Institute for Studies in Economics, Xiamen University)

Abstract

We propose a novel method for calculating product-level emission intensities (PLEI) at highly disaggregate level (Harmonized System 6-digit) for nine emission categories. This method effectively disentangles PLEI from the firm-level efficiency factor that varies across firms and years. Utilizing firm-level emissions data from China for the period 2000–2013, our analysis shows that: (i) there is substantial heterogeneity in PLEI across different products; (ii) the 10% most emission-intensive products contribute to nearly 75% of total emissions, while comprising only 4% of total exports; (iii) a less aggregate categorization of products markedly underestimates the variation in emission intensities; and (iv) China’s export profile shows no tendency towards specialization in products with high emission intensity.

Suggested Citation

  • Kwon, Ohyun & Zhao, Hao & Zhao, Min Qiang, 2024. "Product Level Emission Intensities: Measurement and Application," School of Economics Working Paper Series 2024-4, LeBow College of Business, Drexel University.
    • Handle: RePEc:ris:drxlwp:2024_004
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    References listed on IDEAS

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    Cited by:

    1. Liu, Yinan & Lv, Peiyao & Zhao, Hao, 2024. "Green innovation through trade: The impact of European Union emissions trading scheme on Chinese exporters," Journal of International Money and Finance, Elsevier, vol. 149(C).

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    More about this item

    Keywords

    International trade; Emission intensities; China;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F18 - International Economics - - Trade - - - Trade and Environment
    • 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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