Liu, Z; Dou, X; Yu, Y; Tan, J; Sun, T; Meng, J; (2023) China’s Embodied Carbon Transfer in Global Trade. China Journal of Econometrics , 3 (4) pp. 1225-1242. 10.12012/CJoE2022-0048. (In press).

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Abstract

With the development of global trade, the scale of embodied carbon transfer among countries in the world is generally expanding, and thus an in-depth understanding of China’s embodied carbon emissions in global trade is beneficial for fighting for more carbon emission rights and achieving equitable development. By constructing CO2 emission inventories and multi-regional input-output tables, this study quantitatively estimates the embodied carbon emissions for 140 countries and regions worldwide in 2004, 2007, 2011, and 2014, and analyzes the results at the industry level. This study finds that the carbon transfers among countries further strengthened from 2004 to 2014, and the scale of embodied carbon emissions likewise continued to increase. In 2014, the amount of carbon transfers through global trade is estimated to be 5.3 billion tons, accounting for about a quarter of total global CO2 emissions. China became the center of world exports of embodied carbon emissions, undertaking more than one-fifth of carbon transfers embodied in global trade, while the United States became the center of imports. China’s net carbon emissions embodied in exports increased from 956 Mt in 2004 to 1201 Mt in 2014, making it an increasingly typical net exporter of embodied carbon. China’s export structure is mainly concentrated in energy-intensive and carbon-intensive manufacturing industries, while its import structure involves a variety of sectors, including mining, general manufacturing, and transportation. To reduce embodied carbon emissions, China should actively advocate a scientific accounting mechanism based on the shared responsibility of carbon emissions between the production side and the consumption side, so as to ensure that China receives equitable and reasonable emission credits and emission rights. Meanwhile, it is critical to rectify highly polluting industries, optimize the import and export structure, accelerate the efforts of the low-carbon transition, and improve energy efficiency.

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