Economics at your fingertips  

Carbon fueling complex global value chains tripled in the period 1995-2012

Edgar Hertwich
Additional contact information
Edgar Hertwich: Norwegian University of Science and Technology

No zb3rh, SocArXiv from Center for Open Science

Abstract: Complex global value chains are those involving more than two countries and imply that a country imports products as capital goods or intermediate inputs to the production of its exports. When tracing the life-cycle greenhouse gas (GHG) emissions of traded products, for example for border carbon adjustments, such emissions are counted at each border crossing. The prevalence and dynamics of this phenomenon have been poorly understood. This paper shows that GHG emissions associated with the production of imports used for producing exports have risen rapidly from 1995, peaking in 2012 and declining slightly to 2016. They now constitute a total of 4.4 PgCO2equ. or 10% of global emissions. The most important exported products in terms of emissions associated with imported inputs are chemicals, vehicles, machinery, and information and communications technology (ICT). Crude petroleum, iron and steel, chemicals, and ICT components are the imported products being used for this export production. A driver analysis indicates that in industrialized countries, the declining domestic value added in exports and increasing share of exports in GDP have contributed most to this development, while in emerging economies, the growth of GDP itself has been an important driving factor, while declines in the energy intensity of export production have provided a weak counterbalance. The importance of transiting carbon raises questions of how climate policies affect industrial competitiveness and how border tax adjustment would account for such emissions.

Date: 2018-11-29
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.31219/

Access Statistics for this paper

More papers in SocArXiv from Center for Open Science
Bibliographic data for series maintained by OSF ().

Page updated 2020-01-07
Handle: RePEc:osf:socarx:zb3rh