IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v195y2020ics0360544220300955.html
   My bibliography  Save this article

Energy use embodied in international trade of 39 countries: Spatial transfer patterns and driving factors

Author

Listed:
  • Jiang, Lei
  • He, Shixiong
  • Tian, Xi
  • Zhang, Bo
  • Zhou, Haifeng

Abstract

The energy embodied in international trade is transferred globally through trade links. The understanding of the energy flows embodied in international trade and what drives the variations in embodied energy use is of great significance for achieving the global goal of saving energy and reducing energy-related emissions. Thus, this research, in its first stage, calculated the energy use embodied in international trade of 39 countries from 1995 to 2011 by building a multiregional input-output model and described the spatial transfer patterns of energy flows using geo-visualization techniques. In the second stage, this paper applied the Logarithmic Mean Divisia Index (LMDI) approach to identify the driving factors of embodied energy use. The findings are as follows. (1) The aggregated embodied energy use of these 39 countries significantly increased during the sample period. (2) Regarding the flows of embodied energy use, these 39 countries can be classified into 3 groups, namely, energy-rich countries with net outflows (Group 1), developed countries (Group 2) and developing countries with net inflows (Group 3). (3) From the decomposition results of the LMDI method, both energy intensity and economic output are the main driving factors that affect embodied energy outflow and inflow changes in international trade. The improvement of energy intensity is the main contributor to reducing the increase in energy use embodied in international trade. Moreover, increases in embodied energy use are attributed to the growth of imports and exports, economic output, and population. On the other hand, upgrading industrial systems and optimizing industrial structure can contribute to reducing embodied energy use growth. Accordingly, policy recommendations are given. International trade plays a crucial role in assigning different shares of responsibility for energy-related emissions reduction. To formulate effective and efficient environmental policies, embodied energy use should be considered. Moreover, solutions to alleviate environmental pollution are improved energy use and extensive use of clean energy.

Suggested Citation

  • Jiang, Lei & He, Shixiong & Tian, Xi & Zhang, Bo & Zhou, Haifeng, 2020. "Energy use embodied in international trade of 39 countries: Spatial transfer patterns and driving factors," Energy, Elsevier, vol. 195(C).
    • Handle: RePEc:eee:energy:v:195:y:2020:i:c:s0360544220300955
    DOI: 10.1016/j.energy.2020.116988
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544220300955
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2020.116988?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Su, Bin & Huang, H.C. & Ang, B.W. & Zhou, P., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation," Energy Economics, Elsevier, vol. 32(1), pages 166-175, January.
    2. Ang, B.W., 2015. "LMDI decomposition approach: A guide for implementation," Energy Policy, Elsevier, vol. 86(C), pages 233-238.
    3. Zhong, Zhangqi & Jiang, Lei & Zhou, Peng, 2018. "Transnational transfer of carbon emissions embodied in trade: Characteristics and determinants from a spatial perspective," Energy, Elsevier, vol. 147(C), pages 858-875.
    4. Ang, B. W., 2005. "The LMDI approach to decomposition analysis: a practical guide," Energy Policy, Elsevier, vol. 33(7), pages 867-871, May.
    5. Wu, X.F. & Chen, G.Q., 2017. "Energy use by Chinese economy: A systems cross-scale input-output analysis," Energy Policy, Elsevier, vol. 108(C), pages 81-90.
    6. Arce, Guadalupe & López, Luis Antonio & Guan, Dabo, 2016. "Carbon emissions embodied in international trade: The post-China era," Applied Energy, Elsevier, vol. 184(C), pages 1063-1072.
    7. Xie, Shi-Chen, 2014. "The driving forces of China׳s energy use from 1992 to 2010: An empirical study of input–output and structural decomposition analysis," Energy Policy, Elsevier, vol. 73(C), pages 401-415.
    8. Ding, Qun & Cai, Wenjia & Wang, Can & Sanwal, Mukul, 2017. "The relationships between household consumption activities and energy consumption in china— An input-output analysis from the lifestyle perspective," Applied Energy, Elsevier, vol. 207(C), pages 520-532.
    9. Fernández González, P. & Landajo, M. & Presno, M.J., 2014. "Multilevel LMDI decomposition of changes in aggregate energy consumption. A cross country analysis in the EU-27," Energy Policy, Elsevier, vol. 68(C), pages 576-584.
    10. Jiang, Lei & Folmer, Henk & Ji, Minhe & Zhou, P., 2018. "Revisiting cross-province energy intensity convergence in China: A spatial panel analysis," Energy Policy, Elsevier, vol. 121(C), pages 252-263.
    11. Hoekstra, Rutger & van den Bergh, Jeroen C. J. M., 2003. "Comparing structural decomposition analysis and index," Energy Economics, Elsevier, vol. 25(1), pages 39-64, January.
    12. Sai Liang & Yu Feng & Ming Xu, 2015. "Structure of the Global Virtual Carbon Network: Revealing Important Sectors and Communities for Emission Reduction," Journal of Industrial Ecology, Yale University, vol. 19(2), pages 307-320, April.
    13. Liu, Hongtao & Xi, Youmin & Guo, Ju'e & Li, Xia, 2010. "Energy embodied in the international trade of China: An energy input-output analysis," Energy Policy, Elsevier, vol. 38(8), pages 3957-3964, August.
    14. Chen, G.Q. & Zhang, Bo, 2010. "Greenhouse gas emissions in China 2007: Inventory and input-output analysis," Energy Policy, Elsevier, vol. 38(10), pages 6180-6193, October.
    15. Xu, Jin-Hua & Fleiter, Tobias & Eichhammer, Wolfgang & Fan, Ying, 2012. "Energy consumption and CO2 emissions in China's cement industry: A perspective from LMDI decomposition analysis," Energy Policy, Elsevier, vol. 50(C), pages 821-832.
    16. Li, Zheng & Pan, Lingying & Fu, Feng & Liu, Pei & Ma, Linwei & Amorelli, Angelo, 2014. "China's regional disparities in energy consumption: An input–output analysis," Energy, Elsevier, vol. 78(C), pages 426-438.
    17. Ahmad, Ashfaq & Zhao, Yuhuan & Shahbaz, Muhammad & Bano, Sadia & Zhang, Zhonghua & Wang, Song & Liu, Ya, 2016. "Carbon emissions, energy consumption and economic growth: An aggregate and disaggregate analysis of the Indian economy," Energy Policy, Elsevier, vol. 96(C), pages 131-143.
    18. Liang, Sai & Qi, Zhengling & Qu, Shen & Zhu, Ji & Chiu, Anthony S.F. & Jia, Xiaoping & Xu, Ming, 2016. "Scaling of global input–output networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 452(C), pages 311-319.
    19. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    20. Jiang, Lei & Folmer, Henk & Ji, Minhe, 2014. "The drivers of energy intensity in China: A spatial panel data approach," China Economic Review, Elsevier, vol. 31(C), pages 351-360.
    21. Liang, Qiao-Mei & Fan, Ying & Wei, Yi-Ming, 2007. "Multi-regional input-output model for regional energy requirements and CO2 emissions in China," Energy Policy, Elsevier, vol. 35(3), pages 1685-1700, March.
    22. Chen, B. & Li, J.S. & Wu, X.F. & Han, M.Y. & Zeng, L. & Li, Z. & Chen, G.Q., 2018. "Global energy flows embodied in international trade: A combination of environmentally extended input–output analysis and complex network analysis," Applied Energy, Elsevier, vol. 210(C), pages 98-107.
    23. Hoekman, Bernard M. & Kostecki, Michel M., 2009. "The Political Economy of the World Trading System," OUP Catalogue, Oxford University Press, edition 3, number 9780199553778.
    24. Ang, B.W. & Huang, H.C. & Mu, A.R., 2009. "Properties and linkages of some index decomposition analysis methods," Energy Policy, Elsevier, vol. 37(11), pages 4624-4632, November.
    25. Wu, X.F. & Chen, G.Q., 2017. "Global primary energy use associated with production, consumption and international trade," Energy Policy, Elsevier, vol. 111(C), pages 85-94.
    26. Li, J.S. & Alsaed, A. & Hayat, T. & Chen, G.Q., 2014. "Energy and carbon emission review for Macao's gaming industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 744-753.
    27. Su, Bin & Ang, B.W., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of spatial aggregation," Ecological Economics, Elsevier, vol. 70(1), pages 10-18, November.
    28. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Huang & Chenyang Shuai & Pengchen Xiang & Xi Chen & Bu Zhao & Jingran Sun, 2024. "Assessing the Consumption-based Water Use of Global Construction Sectors and its Impact to the Local Water Shortage," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 38(15), pages 6063-6078, December.
    2. Feng, Qiyangfan & Wei, Hao, 2023. "Import competition and firm energy intensity: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 543-560.
    3. Wang, Zhaohua & Zhang, Hongzhi & Li, Hao & Wang, Song & Wang, Zhenpo, 2023. "Identifying the key factors to China's unsustainable external circulation through the accounting of the flow of embodied energy and virtual water," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    4. Bin Wang & Dechun Huang & Chuanhao Fan & Zhencheng Xing, 2021. "Peak of SO 2 Emissions Embodied in International Trade: Patterns, Drivers and Implications," Sustainability, MDPI, vol. 13(23), pages 1-19, December.
    5. Yadav, Aneet & Mahalik, Mantu Kumar, 2024. "Does renewable energy development reduce energy import dependency in emerging economies? Evidence from CS-ARDL and panel causality approach," Energy Economics, Elsevier, vol. 131(C).
    6. Yuzhuo Huang & Ken’ichi Matsumoto, 2022. "Estimation of CO 2 Emissions Embodied in Domestic Trade and Their Influencing Factors in Japan," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    7. Lachlan Curmi & Kumudu Kaushalya Weththasinghe & Muhammad Atiq Ur Rehman Tariq, 2022. "Global Policy Review on Embodied Flows: Recommendations for Australian Construction Sector," Sustainability, MDPI, vol. 14(21), pages 1-19, November.
    8. Mikhail G. Kuzyk & Liudmila S. Ruzhanskaya, 2024. "Factors of Energy Transition of Manufacturing Companies Regarding their Inclusion in Global Value Chains," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 23(3), pages 642-673.
    9. Ren, Bo & Li, Huajiao & Shi, Jianglan & Ma, Ning & Qi, Yajie, 2022. "Detecting the control and dependence relationships within the global embodied energy trade network," Energy, Elsevier, vol. 238(PB).
    10. Zhang, Shuai & Yang, Dewei & Ji, Yijia & Meng, Haishan & Zhou, Tian & Zhang, Junmei & Yang, Hang, 2024. "Spatio-temporal patterns and cascading risks of embodied energy flows in China," Energy, Elsevier, vol. 298(C).
    11. Doğan, Buhari & Ghosh, Sudeshna & Shahzadi, Irum & Balsalobre-Lorente, Daniel & Nguyen, Canh Phuc, 2022. "The relevance of economic complexity and economic globalization as determinants of energy demand for different stages of development," Renewable Energy, Elsevier, vol. 190(C), pages 371-384.
    12. Zhang, Yi & Fan, Ying & Xia, Yan, 2021. "Structural evolution of energy embodied in final demand as economic growth: Empirical evidence from 25 countries," Energy Policy, Elsevier, vol. 156(C).
    13. Yingying Hu & Wei Wu, 2022. "Spatiotemporal Variation and Driving Factors of Embodied Carbon in China-G7 Trade," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    14. Usubiaga-Liaño, Arkaitz & Arto, Iñaki & Acosta-Fernández, José, 2021. "Double accounting in energy footprint and related assessments: How common is it and what are the consequences?," Energy, Elsevier, vol. 222(C).
    15. Wu, Gang & Pu, Yue & Shu, Tianran, 2021. "Features and evolution of global energy trade network based on domestic value-added decomposition of export," Energy, Elsevier, vol. 228(C).
    16. Xia, Quanzhi & Han, Mengyao & Guan, Shihui & Wu, Xiaofang & Zhang, Bo, 2022. "Tracking embodied energy flows of China's megacities via multi-scale supply chains," Energy, Elsevier, vol. 260(C).
    17. Lu, Cheng & Du, Qiang, 2024. "The heterogeneous effects of transportation infrastructure on trade-embodied CO2 transfer: A multi-scale perspective," Energy, Elsevier, vol. 302(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Zhonghua & Zhao, Yuhuan & Su, Bin & Zhang, Yongfeng & Wang, Song & Liu, Ya & Li, Hao, 2017. "Embodied carbon in China’s foreign trade: An online SCI-E and SSCI based literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 492-510.
    2. Zhu, Bangzhu & Su, Bin & Li, Yingzhu & Ng, Tsan Sheng, 2020. "Embodied energy and intensity in China’s (normal and processing) exports and their driving forces, 2005-2015," Energy Economics, Elsevier, vol. 91(C).
    3. Yan, Junna & Su, Bin, 2020. "What drive the changes in China's energy consumption and intensity during 12th Five-Year Plan period?," Energy Policy, Elsevier, vol. 140(C).
    4. Román-Collado, Rocío & Colinet, Maria José, 2018. "Is energy efficiency a driver or an inhibitor of energy consumption changes in Spain? Two decomposition approaches," Energy Policy, Elsevier, vol. 115(C), pages 409-417.
    5. Bowen Xiao & Dongxiao Niu & Xiaodan Guo, 2016. "The Driving Forces of Changes in CO 2 Emissions in China: A Structural Decomposition Analysis," Energies, MDPI, vol. 9(4), pages 1-17, March.
    6. Zhang, Yi & Fan, Ying & Xia, Yan, 2021. "Structural evolution of energy embodied in final demand as economic growth: Empirical evidence from 25 countries," Energy Policy, Elsevier, vol. 156(C).
    7. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    8. Li, J.S. & Chen, G.Q. & Wu, X.F. & Hayat, T. & Alsaedi, A. & Ahmad, B., 2014. "Embodied energy assessment for Macao׳s external trade," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 642-653.
    9. Trotta, Gianluca, 2020. "Assessing energy efficiency improvements and related energy security and climate benefits in Finland: An ex post multi-sectoral decomposition analysis," Energy Economics, Elsevier, vol. 86(C).
    10. Su, Bin & Ang, B.W., 2013. "Input–output analysis of CO2 emissions embodied in trade: Competitive versus non-competitive imports," Energy Policy, Elsevier, vol. 56(C), pages 83-87.
    11. Boya Zhang & Shukuan Bai & Yadong Ning & Tao Ding & Yan Zhang, 2020. "Emission Embodied in International Trade and Its Responsibility from the Perspective of Global Value Chain: Progress, Trends, and Challenges," Sustainability, MDPI, vol. 12(8), pages 1-26, April.
    12. Kim, Yong-Gun & Yoo, Jonghyun & Oh, Wankeun, 2015. "Driving forces of rapid CO2 emissions growth: A case of Korea," Energy Policy, Elsevier, vol. 82(C), pages 144-155.
    13. Román-Collado, Rocío & Cansino, José M. & Botia, Camilo, 2018. "How far is Colombia from decoupling? Two-level decomposition analysis of energy consumption changes," Energy, Elsevier, vol. 148(C), pages 687-700.
    14. Jiyong Park & Taeyoung Jin & Sungin Lee & Jongroul Woo, 2021. "Industrial Electrification and Efficiency: Decomposition Evidence from the Korean Industrial Sector," Energies, MDPI, vol. 14(16), pages 1-18, August.
    15. Su, Bin & Ang, B.W. & Li, Yingzhu, 2017. "Input-output and structural decomposition analysis of Singapore's carbon emissions," Energy Policy, Elsevier, vol. 105(C), pages 484-492.
    16. Yunlong Zhao & Geng Kong & Chin Hao Chong & Linwei Ma & Zheng Li & Weidou Ni, 2021. "How to Effectively Control Energy Consumption Growth in China’s 29 Provinces: A Paradigm of Multi-Regional Analysis Based on EAALMDI Method," Sustainability, MDPI, vol. 13(3), pages 1-26, January.
    17. Ding, Tao & Ning, Yadong & Zhang, Yan, 2018. "The contribution of China’s bilateral trade to global carbon emissions in the context of globalization," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 78-88.
    18. Su, Bin & Ang, B.W. & Low, Melissa, 2013. "Input–output analysis of CO2 emissions embodied in trade and the driving forces: Processing and normal exports," Ecological Economics, Elsevier, vol. 88(C), pages 119-125.
    19. Cui, Lian-Biao & Peng, Pan & Zhu, Lei, 2015. "Embodied energy, export policy adjustment and China's sustainable development: A multi-regional input-output analysis," Energy, Elsevier, vol. 82(C), pages 457-467.
    20. Meng, Jing & Zhang, Zengkai & Mi, Zhifu & Anadon, Laura Diaz & Zheng, Heran & Zhang, Bo & Shan, Yuli & Guan, Dabo, 2018. "The role of intermediate trade in the change of carbon flows within China," Energy Economics, Elsevier, vol. 76(C), pages 303-312.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:195:y:2020:i:c:s0360544220300955. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.