Reality check and determinants of carbon emission flow in the context of global trade: Indonesia being the centric studied country

Zhongwen Xu and Liming Yao ()
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Zhongwen Xu: Nanjing University
Liming Yao: Sichuan University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2023, vol. 25, issue 10, No 56, 11973-11997

Abstract: Abstract Carbon neutrality, being a ‘new normative’ around the world, is required home and abroad, and such requirement is based on real check of embodied carbon emissions in the international trade. In response, based on the environmental extended multi-regional input–output tables, carbon emission inventories from IEA, and decomposition analysis, this paper comprehensively analyzed the evolution of production- and consumption-based carbon emissions from 2000 to 2014 in Indonesia, explored their disparities in imports, exports, and household demand, and explored main drivers to changes in carbon emission flows. Moreover, historical development patterns over time were measured based on decoupling analysis. The results showed that Indonesia possessed net carbon emission inflows, where China contributed the largest. Increasing trends in carbon emission inflows were found in those embodied in industrial sectors. Dividing the final demand induced emissions, exports accounted for nearly one-third of Indonesia’s final demand carbon emission, while domestic consumption took account of 50% of the total emission, of which local industrial products have increased from 2.6 to 1.5 Mt CO2 from 2000 to 2014, taking account of more than 40%. Export is inevitable if a country peruses a higher level of economic development’s growth rate. The decomposition analysis showed that the economic development effect has increased carbon emission outflow, while the energy emission intensity effect has the opposite impact on carbon emission increase. Striving to achieve a decoupling and sustainable situation, those results pointed out consumers’ responsibilities for future consumption and suggested the sustainable development pattern for emerging economy–Indonesia can be greatly facilitated by international trade control as well as carbon emission intensity mitigation measures.

Keywords: Embodied carbon emission; Indonesia; Sustainable development mode; Consumption-based evaluation; Environmental extended multi-region input–output method (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10668-022-02562-6

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