Spatial spillover effects in determining China's regional CO2 emission growth: 2007-2010

Bo Meng and Xue Jinjun

No 576, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper proposes an alternative input-output based spatial-structural decomposition analysis to elucidate the role of domestic-regional heterogeneity and interregional spillover effects in determining China's regional CO2 emission growth. Our empirical results based on the 2007 and 2010 Chinese interregional input-output tables show that the changes in most regions' final demand scale, final expenditure structure and export scale give positive spatial spillover effects on other regions' CO2 emission growth, the changes in most regions' consumption and export preference help the reduction of other regions' CO2 emissions, the changes in production technology, and investment preference may give positive or negative impacts on other region's CO2 emission growth through domestic supply chains. For some regions, the aggregate spillover effect from other regions may be larger than the intra-regional effect in determining regional emission growth. All these facts can significantly help better and deeper understanding on the driving forces of China's regional CO2 emission growth, thus can enrich the policy implication concerning a narrow definition of "carbon leakage" through domestic-interregional trade, and relevant political consensus about the responsibility sharing between developed and developing regions inside China.

Keywords: Environmental problems; Global warming; Input-output tables; Regional heterogeneity; Spillover effect; CO2 emissions; Input-output; Supply chain (search for similar items in EconPapers)
JEL-codes: C65 Q56 R15 (search for similar items in EconPapers)
Date: 2016-03-01
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env and nep-tra
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Citations: View citations in EconPapers (2)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 576. 2016-03-01

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Related works:
Journal Article: Spatial spillover effects in determining China's regional CO2 emissions growth: 2007–2010 (2017)
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