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Carbon transfer within China: Insights from production fragmentation

Feng, T; Du, H; Zhang, Z; Mi, Z; Guan, D; Zuo, J; (2020) Carbon transfer within China: Insights from production fragmentation. Energy Economics , 86 , Article 104647. 10.1016/j.eneco.2019.104647. Green open access

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Abstract

Production fragmentation not only reshapes trade patterns but also reallocates trade-related emissions. This study employs China's multi-regional input-output tables for 2007, 2010 and 2012 to explore the effect of production fragmentation on virtual carbon trade derived from three trade patterns, i.e. final goods trade, intermediate goods trade for the final stage of production, and value chain-related trade. Results showed that inter-provincial trade within China reduced the national carbon emissions by 208 Mt. and 114 Mt. in 2007 and 2012. The first two trade patterns contributed to the reduction, while value-chain-related trade resulted in carbon growth. The four trillion yuan stimulus package promoted the development of energy intensive industries while inter-provincial trade increased national carbon emissions by 247 Mt. in 2010. Moreover, this study revealed a list of provinces, trade patterns and sectors with the high carbon reduction potential.

Type: Article
Title: Carbon transfer within China: Insights from production fragmentation
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.eneco.2019.104647
Publisher version: https://doi.org/10.1016/j.eneco.2019.104647
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: Production fragmentation, Carbon emissions, Multi-regional input-output analysis, Value chain
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment
URI: https://discovery-pp.ucl.ac.uk/id/eprint/10092449
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