LIU Yu:Analysis of Embodied CO2 Emissions in China‘s Bilateral Trade A Processing Trade Differentiated Non-Competitive Import Input-Output Approach

Abstract：Trade embodied CO₂ emissions is critical to the estimation of one nation's actual emissions.Many studies estimated China's trade embodied CO₂ emission and was of great value, China's CO₂ emissions were seriously overestimated.This paper re-calculated China's CO₂ emissions embodied in the bilateral trade with US, Japan, EU and other countries by using the latest data and different methods and achieved some new conclusions.The net CO₂ emission embodied in China's trade in 2007 was only 400 million tons, much less than current estimation.Accordingly, China's CO₂ emission from the consumption side in 2007 has just dropped to 5.628 billion tons, the emission transfer only accounting for 6.6% of the total CO₂ emissions calculated from the production side.Therefore, since the CO₂ emission embodied in China's trade is actually not as large as previously predicted, China should put more emphasis on the energy saving and emission reduction on its own side so as to substantially abate the CO₂ emissions, rather than solely focusing on the effect of emission transfer on China's CO₂ emission.

Key words： Embodied Carbon Emissions    Non-competitive    Processing Trade    Emissions from Consumption Side

source:Finance & Trade Economics ,No.5,2015