The Imbalance of Embodied CO 2 in China’s Imports, Exports and Its Causes

Zhiheng Chen and Yaru Tan
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Zhiheng Chen: College of Northeast Asian Studies, Jilin University, No. 2699 Qianjin Street, Changchun 130012, China
Yaru Tan: College of Northeast Asian Studies, Jilin University, No. 2699 Qianjin Street, Changchun 130012, China

Sustainability, 2022, vol. 14, issue 11, 1-17

Abstract: Constraining the embodied CO 2 from international trade is a crucial part of China’s efforts to achieve emission peak and carbon neutrality. By referring to the WIOD, this article applies the Global Multi-Regional Input-Output (GMRIO) Model and the Value-added Trade Accounting Method to calculate the amount of embodied CO 2 in China’s international trade from 2000 to 2014. Results indicate that China’s embodied CO 2 in imports and exports is imbalanced in three dimensions: product, region, and industry. One direct cause of this phenomenon is China’s higher carbon emission factors compared to its trading partner. However, the real cause is the global relocation of energy-intensive industries, which leads China to undertake the production of high-carbon industries. To achieve the 3060 Dual Carbon Goal and high-quality economic development, China needs comprehensive and systematic reforms in its economic structure.

Keywords: embodied CO 2; trade value-added; GMRIO model; GVCs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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