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Value-Added-Based Accounting of CO 2 Emissions: A Multi-Regional Input-Output Approach

Hongguang Liu () and Xiaomei Fan ()
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Hongguang Liu: College of Public Administration, Nanjing Agricultural University, Nanjing 210095, China
Xiaomei Fan: School of Geographical Sciences, Nanjing University of Information Science & Technology, Nanjing 210044, China

Sustainability, 2017, vol. 9, issue 12, 1-18

Abstract: In the era of globalization and international trade, the production-based CO 2 emissions accounting system, proposed by United Nations Framework Convention on Climate Change, can easily lead to a “carbon leakage” issue. Thus, the accounting of consumption-based carbon emissions and carbon emissions embodied in international trade has received considerable research attention. Nevertheless, researchers also indicated that the consumption-based principle has some weaknesses, for example, it leads the producers inert on reducing carbon emissions while gaining economic benefits. To share carbon emissions responsibilities between producers and consumers is widely recognized. So, setting an income-based emissions accounting method as to producer is a necessary complement for accounting national carbon emissions. This study promoted a model, called the value-added-based accounting of CO 2 emissions method, to account for anthropogenic CO 2 emissions within the context of the economic benefit principle. Based on the global multi-regional input-output table and national carbon emissions database, we calculated the national/regional carbon emissions based on the value-added accounting approach as well as the amount of global carbon emissions embodied in value-added chains. If the results are served as a supplement for calculating the amount of CO 2 emissions reduction that a country is responsible for, problems such as carbon leakage and resistance to improving the energy efficiency of exporting sector may be solved, because all the supply chains emissions associated with the economic growth of a country would be considered.

Keywords: embodied emissions; multi-regional input-output; value-added; global (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2017
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