Identifying the driving forces of embodied emissions from intermediate goods export

Fumiya Nagashima, Shohei Tokito and Tesshu Hanaka

Energy Economics, 2025, vol. 143, issue C

Abstract: This study investigates the changes in CO2 emissions associated with intermediate exports in Japan, China, the US, and Europe from 2000 to 2021. Using a novel structural decomposition analysis (SDA) framework, we analyze the impact of intermediate goods trade structures on emissions amidst globalization, slowbalization, the COVID-19 pandemic, and geopolitical shifts. Our analysis highlights that emissions embodied in exports significantly vary by region and period. China has the highest emissions due to rapid industrial growth, while developed regions like Japan, the US, and Europe show different trends. The sectoral analysis identifies manufacturing industries as key contributors to intermediate goods export emissions. Meanwhile, SDA shows that technological improvements generally reduce emissions, and final demand and trade effects increase them. The findings emphasize the need for coordinated efforts to address the environmental impacts of globalization, and the importance of future research to refine emission accounting models and explore the effects of emerging economic trends on global carbon emissions.

Keywords: Carbon emissions; Global supply chains; International trade; Intermediate goods; Structural decomposition analysis (search for similar items in EconPapers)
JEL-codes: Q43 Q56 R15 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:143:y:2025:i:c:s0140988325001069

DOI: 10.1016/j.eneco.2025.108283

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