IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i15p3786-d388858.html
   My bibliography  Save this article

Determinants of Oil Footprints Embodied in Sino-US Trade: A Perspective from the Globalizing World

Author

Listed:
  • Jinghui Liu

    (School of Economic and Management, China University of Petroleum (East China), Qingdao 266580, China)

  • Tingting Geng

    (School of Economic and Management, China University of Petroleum (East China), Qingdao 266580, China)

  • Xingwei Wang

    (School of Information and Control Engineering, China University of Petroleum (East China), Qingdao 266580, China)

  • Guojin Qin

    (School of Civil Engineering and Geomatics, Southwest Petroleum University, Chengdu 610500, China)

Abstract

Oil plays an important role in global resource allocation. With the continuous development of the global supply chain, trade has brought a great impact on oil consumption. However, few studies have been focused on the oil consumption embodied in trade, that is, the oil footprints. Therefore, based on the multi-regional input-output model and structural decomposition model, this paper investigates the evolution and driving factors of the oil footprint between the two countries with the largest oil consumption in the world (China and the United States). By measuring the flow of oil footprint in bilateral trade, their trade transactions are analyzed at the national and industry levels. The results show that in Sino-US trade, China is a net exporter of virtual oil and the trade surplus is huge. The United States is the main destination of China’s virtual oil consumption exports. In 2004, China’s embodied oil net exports flowing into the US even exceeded its total net exports. Low value-added, high-consumption manufacturing is the main channel for China’s virtual oil to flow to the United States, which reflects that China is still at the bottom of the value chain. The most important factor in promoting exports’ growth is the scale effect of demand, followed by the input structure effect of intermediate products. The technical effect is an important force to curb the growth of oil footprints. This requires China and the United States to accelerate technological progress and reduce energy consumption intensity. At the same time, China should continue to optimize its trade structure, encourage the export of high-value-added products, and strive to climb the global value chain.

Suggested Citation

  • Jinghui Liu & Tingting Geng & Xingwei Wang & Guojin Qin, 2020. "Determinants of Oil Footprints Embodied in Sino-US Trade: A Perspective from the Globalizing World," Energies, MDPI, vol. 13(15), pages 1-26, July.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:15:p:3786-:d:388858
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/15/3786/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/15/3786/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    2. Guo, Shan & Zheng, Shupeng & Hu, Yunhao & Hong, Jingke & Wu, Xiaofang & Tang, Miaohan, 2019. "Embodied energy use in the global construction industry," Applied Energy, Elsevier, vol. 256(C).
    3. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Multiplicative structural decomposition analysis of energy and emission intensities: Some methodological issues," Energy, Elsevier, vol. 123(C), pages 47-63.
    4. Terrie L. Walmsley & Thomas W. Hertel, 2001. "China's Accession to the WTO: Timing is Everything," The World Economy, Wiley Blackwell, vol. 24(8), pages 1019-1049, September.
    5. Wu, X.F. & Chen, G.Q., 2019. "Global overview of crude oil use: From source to sink through inter-regional trade," Energy Policy, Elsevier, vol. 128(C), pages 476-486.
    6. Haidi Gao & Alun Gu & Gehua Wang & Fei Teng, 2019. "A Structural Decomposition Analysis of China’s Consumption-Based Greenhouse Gas Emissions," Energies, MDPI, vol. 12(15), pages 1-17, July.
    7. Ali, Yousaf, 2017. "Carbon, water and land use accounting: Consumption vs production perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 921-934.
    8. Cemil Serhat AKIN, 2014. "The Impact of Foreign Trade, Energy Consumption andIncome on Co2 Emissions," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 465-475.
    9. 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.
    10. Gao, Cuixia & Su, Bin & Sun, Mei & Zhang, Xiaoling & Zhang, Zhonghua, 2018. "Interprovincial transfer of embodied primary energy in China: A complex network approach," Applied Energy, Elsevier, vol. 215(C), pages 792-807.
    11. Brown, Stephen P.A., 2018. "New estimates of the security costs of U.S. oil consumption," Energy Policy, Elsevier, vol. 113(C), pages 171-192.
    12. Decun Wu & Jinping Liu, 2016. "Multi-Regional Input-Output (MRIO) Study of the Provincial Ecological Footprints and Domestic Embodied Footprints Traded among China’s 30 Provinces," Sustainability, MDPI, vol. 8(12), pages 1-31, December.
    13. 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.
    14. Li, Fangyi & Song, Zhouying & Liu, Weidong, 2014. "China's energy consumption under the global economic crisis: Decomposition and sectoral analysis," Energy Policy, Elsevier, vol. 64(C), pages 193-202.
    15. Nagashima, Shin & Uchiyama, Yohji & Okajima, Keiichi, 2017. "Hybrid input–output table method for socioeconomic and environmental assessment of a wind power generation system," Applied Energy, Elsevier, vol. 185(P2), pages 1067-1075.
    16. 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.
    17. Shichun Xu & Chang Gao & Yunfan Li & Xiaoxue Ma & Yifeng Zhou & Zhengxia He & Bin Zhao & Shuxiao Wang, 2019. "What Influences the Cross-Border Air Pollutant Transfer in China–United States Trade: A Comparative Analysis Using the Extended IO-SDA Method," Sustainability, MDPI, vol. 11(22), pages 1-21, November.
    18. Chen, Z.M. & Chen, G.Q., 2011. "An overview of energy consumption of the globalized world economy," Energy Policy, Elsevier, vol. 39(10), pages 5920-5928, October.
    19. Dong, Di & An, Haizhong & Huang, Shupei, 2017. "The transfer of embodied carbon in copper international trade: An industry chain perspective," Resources Policy, Elsevier, vol. 52(C), pages 173-180.
    20. Chen, G.Q. & Wu, X.F., 2017. "Energy overview for globalized world economy: Source, supply chain and sink," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 735-749.
    21. 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.
    22. Kjartan Steen-Olsen & Anne Owen & John Barrett & Dabo Guan & Edgar G. Hertwich & Manfred Lenzen & Thomas Wiedmann, 2016. "Accounting for value added embodied in trade and consumption: an intercomparison of global multiregional input--output databases," Economic Systems Research, Taylor & Francis Journals, vol. 28(1), pages 78-94, March.
    23. 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.
    24. Zhang, B. & Qiao, H. & Chen, Z.M. & Chen, B., 2016. "Growth in embodied energy transfers via China’s domestic trade: Evidence from multi-regional input–output analysis," Applied Energy, Elsevier, vol. 184(C), pages 1093-1105.
    25. Wu, X.F. & Chen, G.Q., 2018. "Coal use embodied in globalized world economy: From source to sink through supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 978-993.
    26. Deng, Guangyao & Xu, Yan, 2017. "Accounting and structure decomposition analysis of embodied carbon trade: A global perspective," Energy, Elsevier, vol. 137(C), pages 140-151.
    27. Jiang, Xuemei & Guan, Dabo, 2017. "The global CO2 emissions growth after international crisis and the role of international trade," Energy Policy, Elsevier, vol. 109(C), pages 734-746.
    28. Cansino, José M. & Román, Rocío & Ordóñez, Manuel, 2016. "Main drivers of changes in CO2 emissions in the Spanish economy: A structural decomposition analysis," Energy Policy, Elsevier, vol. 89(C), pages 150-159.
    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. Zhang, Chuanguo & Yu, Xiaoxue & Zhou, Juncen, 2024. "China's embodied oil outflow in GVC participation: Patterns and drivers," Resources Policy, Elsevier, vol. 91(C).
    2. Pan, Wenqi & Chang, Wei-Yew & Wu, Ting & Zhang, Han & Ning, Zhuo & Yang, Hongqiang, 2021. "Impacts of the China-US trade restrictions on the global forest sector: A bilateral trade flow analysis," Forest Policy and Economics, Elsevier, vol. 123(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. Li, Y.L. & Chen, B. & Chen, G.Q., 2020. "Carbon network embodied in international trade: Global structural evolution and its policy implications," Energy Policy, Elsevier, vol. 139(C).
    2. Kan, S.Y. & Chen, B. & Wu, X.F. & Chen, Z.M. & Chen, G.Q., 2019. "Natural gas overview for world economy: From primary supply to final demand via global supply chains," Energy Policy, Elsevier, vol. 124(C), pages 215-225.
    3. Jinghan Chen & Wen Zhou & Hongtao Yang, 2019. "Is Embodied Energy a Better Starting Point for Solving Energy Security Issues?—Based on an Overview of Embodied Energy-Related Research," Sustainability, MDPI, vol. 11(16), pages 1-22, August.
    4. Sun, Xudong & Li, Jiashuo & Qiao, Han & Zhang, Bo, 2017. "Energy implications of China's regional development: New insights from multi-regional input-output analysis," Applied Energy, Elsevier, vol. 196(C), pages 118-131.
    5. Zhang, Bo & Qu, Xue & Meng, Jing & Sun, Xudong, 2017. "Identifying primary energy requirements in structural path analysis: A case study of China 2012," Applied Energy, Elsevier, vol. 191(C), pages 425-435.
    6. Tian, Xu & Chen, Bin & Geng, Yong & Zhong, Shaozhuo & Gao, Cuixia & Wilson, Jeffrey & Cui, Xiaowei & Dou, Yi, 2019. "Energy footprint pathways of China," Energy, Elsevier, vol. 180(C), pages 330-340.
    7. Li, Yilin & Chen, Bin & Li, Chaohui & Li, Zhi & Chen, Guoqian, 2020. "Energy perspective of Sino-US trade imbalance in global supply chains," Energy Economics, Elsevier, vol. 92(C).
    8. Tang, Miaohan & Hong, Jingke & Liu, Guiwen & Shen, Geoffrey Qiping, 2019. "Exploring energy flows embodied in China's economy from the regional and sectoral perspectives via combination of multi-regional input–output analysis and a complex network approach," Energy, Elsevier, vol. 170(C), pages 1191-1201.
    9. 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).
    10. Yue Fu & Long Xue & Yixin Yan & Yao Pan & Xiaofang Wu & Ying Shao, 2021. "Energy Network Embodied in Trade along the Belt and Road: Spatiotemporal Evolution and Influencing Factors," Sustainability, MDPI, vol. 13(19), pages 1-29, September.
    11. Wu, X.D. & Guo, J.L. & Ji, Xi & Chen, G.Q., 2019. "Energy use in world economy from household-consumption-based perspective," Energy Policy, Elsevier, vol. 127(C), pages 287-298.
    12. Zahraee, Seyed Mojib & Rahimpour Golroudbary, Saeed & Shiwakoti, Nirajan & Stasinopoulos, Peter, 2021. "Particle-Gaseous pollutant emissions and cost of global biomass supply chain via maritime transportation: Full-scale synergy model," Applied Energy, Elsevier, vol. 303(C).
    13. Shepard, Jun U. & Pratson, Lincoln F., 2020. "Hybrid input-output analysis of embodied energy security," Applied Energy, Elsevier, vol. 279(C).
    14. Wu, X.F. & Chen, G.Q., 2018. "Coal use embodied in globalized world economy: From source to sink through supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 978-993.
    15. Hongguang Liu & Xiaomei Fan, 2017. "Value-Added-Based Accounting of CO 2 Emissions: A Multi-Regional Input-Output Approach," Sustainability, MDPI, vol. 9(12), pages 1-18, December.
    16. Han, Mengyao & Xiong, Jiao & Yang, Yu, 2023. "Comparisons between direct and embodied natural gas networks: Topology, dependency and vulnerability," Energy, Elsevier, vol. 280(C).
    17. Song, Xiaoxin & Li, Rongrong, 2023. "Tracing and excavating critical paths and sectors for embodied energy consumption in global supply chains: A case study of China," Energy, Elsevier, vol. 284(C).
    18. Ji, Xi & Liu, Yifang & Meng, Jing & Wu, Xudong, 2020. "Global supply chain of biomass use and the shift of environmental welfare from primary exploiters to final consumers," Applied Energy, Elsevier, vol. 276(C).
    19. Kan, Siyi & Chen, Bin & Chen, Guoqian, 2019. "Worldwide energy use across global supply chains: Decoupled from economic growth?," Applied Energy, Elsevier, vol. 250(C), pages 1235-1245.
    20. Kan, Siyi & Chen, Bin & Meng, Jing & Chen, Guoqian, 2020. "An extended overview of natural gas use embodied in world economy and supply chains: Policy implications from a time series analysis," Energy Policy, Elsevier, vol. 137(C).

    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:gam:jeners:v:13:y:2020:i:15:p:3786-:d:388858. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.