Inequality Evolution of Economic Gains and Environmental Losses in Chinese Interprovincial Trade during 2007–2017

Yuan Qian, Huan Zheng, Xin Cao, Ting Li, Lin Zhao () and Sulian Wang
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Yuan Qian: Petroleum Exploration and Production Research Institute, Sinopec, Beijing 102206, China
Huan Zheng: Petroleum Exploration and Production Research Institute, Sinopec, Beijing 102206, China
Xin Cao: School of Economics and Management, China University of Petroleum, Beijing 102249, China
Ting Li: Petroleum Exploration and Production Research Institute, Sinopec, Beijing 102206, China
Lin Zhao: School of Economics, Beijing Technology and Business University, Beijing 100048, China
Sulian Wang: School of Economics and Management, Hebei University of Technology, Tianjin 300401, China

Sustainability, 2024, vol. 16, issue 5, 1-25

Abstract: A reduction in SO 2 emissions is important for sustainable development. However, China uses territorial emissions to determine its SO 2 emission mitigation targets, ignoring the emissions that are incorporated into interregional trade. In addition to the transfer of pollution, value added can also be exchanged with trade, resulting in environmental inequality among regions. In this study, we estimate the embodied SO 2 emissions (ESE) under production-, consumption-, and income-based accounting principles and quantify the embodied value added (EVA) within the interprovincial trade during 2007–2017 using the multi-regional input–output (MRIO) model. The inequalities between the ESE and EVA are further investigated using the Gini coefficients method and the regional environmental index method. The results indicate that ~34.7–43.4% of SO 2 emissions and ~24.6–30.8% of value added were triggered by interprovincial trade. Furthermore, developed provinces mainly outsourced their emissions to less developed provinces, particularly to those nearby. Concerning the value added, it was mainly outsourced from less developed provinces to developed provinces during 2007–2010, with no clear patterns observed during 2012–2017. The study’s findings indicate that the high inequality of SO 2 emissions and value added also occurred between developed and less developed provinces. Particularly, the Gini coefficients of value inflow–SO 2 outflow (VISO) were larger than those of value outflow–SO 2 inflow (VOSI), which indicated that, besides the direct emissions, consumption-based emissions should be considered when allocating the environmental responsibility among provinces. These findings are valuable for shaping pathways towards achieving regional economic coordination and sustainable development.

Keywords: embodied SO 2 emissions; value added in trade; environmental inequality; multi-regional input–output model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:5:p:2033-:d:1349032

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