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Carbon transfer within China: Insights from production fragmentation

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  • Feng, Tong
  • Du, Huibin
  • Zhang, Zengkai
  • Mi, Zhifu
  • Guan, Dabo
  • Zuo, Jian

Abstract

Production fragmentation not only reshapes trade patterns but also reallocates trade-related emissions. This study employs China's multi-regional input-output tables for 2007, 2010 and 2012 to explore the effect of production fragmentation on virtual carbon trade derived from three trade patterns, i.e. final goods trade, intermediate goods trade for the final stage of production, and value chain-related trade. Results showed that inter-provincial trade within China reduced the national carbon emissions by 208 Mt. and 114 Mt. in 2007 and 2012. The first two trade patterns contributed to the reduction, while value-chain-related trade resulted in carbon growth. The four trillion yuan stimulus package promoted the development of energy intensive industries while inter-provincial trade increased national carbon emissions by 247 Mt. in 2010. Moreover, this study revealed a list of provinces, trade patterns and sectors with the high carbon reduction potential.

Suggested Citation

  • Feng, Tong & Du, Huibin & Zhang, Zengkai & Mi, Zhifu & Guan, Dabo & Zuo, Jian, 2020. "Carbon transfer within China: Insights from production fragmentation," Energy Economics, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:eneeco:v:86:y:2020:i:c:s014098831930444x
    DOI: 10.1016/j.eneco.2019.104647
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    8. Li, Rongrong & Wang, Qiang & Wang, Xuefeng & Zhou, Yulin & Han, Xinyu & Liu, Yi, 2022. "Germany's contribution to global carbon reduction might be underestimated – A new assessment based on scenario analysis with and without trade," Technological Forecasting and Social Change, Elsevier, vol. 176(C).

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    More about this item

    Keywords

    Production fragmentation; Carbon emissions; Multi-regional input-output analysis; Value chain;
    All these keywords.

    JEL classification:

    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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