On the Interpretation and Measurement of Technology-Adjusted Emissions Embodied in Trade

Aldy Darwili and Enno Schröder
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Aldy Darwili: Delft University of Technology

Environmental & Resource Economics, 2023, vol. 84, issue 1, No 4, 65-98

Abstract: Abstract We propose a new method for standardizing the production technology at the world average level and derive interpretations for the resulting carbon emission concepts. The technology-adjusted emission balance measures net weak carbon leakage defined as the difference between the foreign emissions avoided by exports and the foreign emissions generated by imports. We use global multi-regional input–output tables to document the variable’s spatio-temporal variation for 49 economies between 1995 and 2015. There is a positive cross-country correlation between net leakage and per-capita income. Changes in net leakage are generally small and do not account for country-specific emission trends, that is, domestic emission decreases were not offset by foreign emission increases.

Keywords: CO2; Carbon; Climate change; Decoupling; Displacement; Emissions; Global value chains; Leakage; Offshoring; Outsourcing; Input–output; Trade (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10640-022-00725-7

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