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Impact of inter-sectoral trade on national and global CO2 emissions: An empirical analysis of China and US

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  • Guo, Jie
  • Zou, Le-Le
  • Wei, Yi-Ming

Abstract

This paper attempts to discuss the CO2 emissions embodied in Sino-US international trade using a sector approach. Based on an input-output model established in this study, we quantify the impact of Sino-US international trade on national and global CO2 emissions. Our initial findings reveal that: In 2005, the US reduced 190.13Â Mt CO2 emissions through the consumption of imported goods from China, while increasing global CO2 emissions by about 515.25Â Mt. Similarly, China reduced 178.62Â Mt CO2 emissions through the consumption of US goods, while reducing global CO2 emissions by 129.93Â Mt. Sino-US international trade increased global CO2 emissions by 385.32Â Mt as a whole, of which the Chemical, Fabricated Metal Products, Non-metallic Mineral Products and Transportation Equipment sectors contributed an 86.71% share. Therefore, we suggest that accelerating the adjustment of China's trade structure and export of US advanced technologies and experience related to clean production and energy efficiency to China as the way to reduce the negative impact of Sino-US trade on national and global CO2 emissions. This behavior should take into account the processing and manufacturing industries as a priority, especially the Chemical, Fabricated Metal Products, Non-metallic Mineral Products and Transportation Equipment sectors.

Suggested Citation

  • Guo, Jie & Zou, Le-Le & Wei, Yi-Ming, 2010. "Impact of inter-sectoral trade on national and global CO2 emissions: An empirical analysis of China and US," Energy Policy, Elsevier, vol. 38(3), pages 1389-1397, March.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:3:p:1389-1397
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