Ecologically unequal exchange (EUE) as a multi-tiered hierarchy: Investigating the interdependence of global and domestic environmental inequalities to explain China's rise

Luca Tausch and Jeffrey Althouse

Ecological Economics, 2025, vol. 235, issue C

Abstract: The theory of ecologically unequal exchange (EUE) suggests that economic relations involve an asymmetric transfer of biophysical resources from the periphery to the core. Despite growing empirical evidence for EUE at the global level, studies have not yet sufficiently analysed the role of semi-peripheries, or the connection between global and domestic processes in reproducing environmental inequalities. To address this gap, we rely on an environmentally extended multi-regional input-output (EEMRIO) model to analyse China's involvement in global (G-EUE) and domestic (D-EUE) EUE from 1987 to 2017. Globally, we show that China's semi-peripheral role is two-fold: China increasingly appropriates natural resources from semi-peripheral and peripheral countries while acting as a net provider of biophysical resources to the core. Domestically, the wealthy East Coast zone is the only net importer of embodied energy and TiVA, while all other regions are net exporters. While China continues to be exploited by the core, it has fuelled its ascent by developing increasingly extractive relationships with peripheral regions both within and outside its borders. Our results suggest the need to move beyond a simple core-periphery dichotomy and to study EUE as a multi-tiered hierarchy of uneven biophysical flows.

Keywords: Ecologically unequal exchange; China; Embodied trade flows; Environmentally extended multi-regional input-output analysis; Inter- and intra-country inequality; International trade; Structural decomposition analysis (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:235:y:2025:i:c:s0921800925001272

DOI: 10.1016/j.ecolecon.2025.108644

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