China’s provincial CO₂ emissions embodied in trade with implications for regional climate policy

Abstract

CO₂ emissions embodied in trade have an important and far-reaching impact on CO₂ emissions reduction obligations. Based on a multi-regional input–output analysis, this paper calculates China’s provincial CO₂ emissions embodied in trade and analyzes CO₂ emissions embodied in trade per unit of value of trade in 30 Chinese provinces. Several climate policy options that potentially reduce the impact of trade on individual provinces are discussed. One finding from this study is that provincial CO₂ emissions embodied in trade accounted for approximately 60.02% of China’s CO₂ emissions in 2007. The CO₂ emissions embodied in imports and exports for 30 Chinese provinces differ widely, and remarkable differences in the CO₂ emissions embodied in trade per unit of value of trade exist. Another important finding is that if provinces take binding commitments as a part of a coalition, instead of as individual provinces, then the impacts of trade can be reduced. Notably, however, the extent of reduction in a coalition varies in different provinces.

Graphical abstract

Keywords

multi-regional input–output analysis / value of trade / cooperation

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