Carbon monoxide and multi‐pollutants flow between China and India: A multiregional input–output model

Yan Li, Yigang Wei, Hanxiao Xu, Huanwen Liu and Julien Chevallier

The World Economy, 2023, vol. 46, issue 8, 2514-2537

Abstract: This study aims to analyse the spatial and temporal characteristics of the transfer of pollutants, including carbon monoxide (CO), ammonia (NH3), non‐methane volatile organic compounds (NMVOCs), sulphur dioxide (SO2), nitrogen oxide (NOX), and particulate matter with particle size below 10 microns (PM10), which are embodied in the bilateral trade between China and India, and the transfer paths between various industries. A multiregional input–output model (MRIO) is constructed based on the EORA Database to track the economic connections and the effects of specific products across regional supply chains. The empirical results indicate the following significant findings. China is a net exporter of embodied pollutants in bilateral trade, and India is a net importer. CO accounted for the most significant amount of pollutants emitted by the bilateral trade between China and India. The energy intensity has mainly adverse effects on emissions of six pollutants, while the consumption scale has overall positive effects. Metal products and mining and quarrying are the top two industries producing the highest emissions at the export ends. The emissions of certain pollutants, such as SO2, are also particularly pronounced in individual sectors. Construction and electrical and machinery are the highest CO‐importing sectors of China and India.

Date: 2023
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