Industrial Distribution and LMDI Decomposition of Trade‐Embodied CO2 in China

Zi Cao and Jie Wei

The Developing Economies, 2019, vol. 57, issue 3, 211-232

Abstract: This paper investigates trade‐embodied CO2 in China, with a special focus on the production processes and materials of each industrial sector from 1990 to 2013. It uses an input–output model, which analyzes the specific causes of periodic waves. Our findings suggest that the machine‐manufacturing sector produced the largest amount of emissions, whereas the metal and nonmetal sector had the highest intensity of emissions. Moreover, the total emission quantities in trade increased from 612 to 3,331 million tons from 1990 to 2013. We employ the log‐mean Divisia index (LMDI) model to decompose the carbon emissions changes into export structure, export volume, energy structure, and energy intensity and estimate the influence of these factors at a number of time points. We find that energy intensity curbed emissions increase and that export volume expansion was the strongest driving force.

Date: 2019
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