IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v25y2023i11d10.1007_s10668-022-02612-z.html
   My bibliography  Save this article

Examining industrial air pollution embodied in trade: implications of a hypothetical China-UK FTA

Author

Listed:
  • Yuquan W. Zhang

    (Shanghai Jiao Tong University)

  • Yong Geng

    (Shanghai Jiao Tong University
    Shanghai Jiao Tong University
    Shanghai Jiao Tong University
    Shanghai Institute of Pollution Control and Ecological Security)

  • Bin Zhang

    (Ministry of Ecology and Environment)

  • Shaohua Yang

    (Shanghai Jiao Tong University)

  • David V. Izikowitz

    (Shanghai Jiao Tong University)

  • Haitao Yin

    (Shanghai Jiao Tong University)

  • Fei Wu

    (ETH Zürich
    Delft University of Technology)

  • Haishan Yu

    (Shanghai Jiao Tong University)

  • Huiwen Liu

    (Shanghai Jiao Tong University)

  • Weiduo Zhou

    (Shanghai Academy of Social Sciences)

Abstract

Very few developed economies have a full free trade agreement (FTA) with China. This study employs one GTAP model and builds an extended environmental multi-region input–output model to investigate a hypothetical China-UK FTA, concerning embodied industrial emissions of SO2, PM2.5, NOX, and NH3. The economic sectors are also classified based on their embodied pollution intensity and trade advantage index under various FTA scenarios. Results show that the UK’s GDP and welfare and China’s welfare will increase, along with changes in their trade structures. Overall, this FTA brings about larger net impacts on embodied emissions of SO2 than on PM2.5, NOX and NH3, and both countries are net importers of the latter three pollutants. Key sectors such as non-metallic mineral products, chemical products, and agriculture are inclined to become less competitive and less polluting under the FTA. The inclusion of agri-food sectors exhibits slight counteracting effects in general. The findings are of policy importance as they provide insights into how best to target key sectors, seeking a balance between trade development and environmental protection.

Suggested Citation

  • Yuquan W. Zhang & Yong Geng & Bin Zhang & Shaohua Yang & David V. Izikowitz & Haitao Yin & Fei Wu & Haishan Yu & Huiwen Liu & Weiduo Zhou, 2023. "Examining industrial air pollution embodied in trade: implications of a hypothetical China-UK FTA," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 13253-13279, November.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:11:d:10.1007_s10668-022-02612-z
    DOI: 10.1007/s10668-022-02612-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-022-02612-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-022-02612-z?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. Moon, Wanki, 2011. "Is agriculture compatible with free trade?," Ecological Economics, Elsevier, vol. 71(C), pages 13-24.
    2. Kirsten Svenja Wiebe & Eivind Lekve Bjelle & Johannes Többen & Richard Wood, 2018. "Implementing exogenous scenarios in a global MRIO model for the estimation of future environmental footprints," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-18, December.
    3. Abbasi, Kashif Raza & Hussain, Khadim & Redulescu, Magdalena & Ozturk, Ilhan, 2021. "Does natural resources depletion and economic growth achieve the carbon neutrality target of the UK? A way forward towards sustainable development," Resources Policy, Elsevier, vol. 74(C).
    4. Stefan Bojnec & Imre Ferto, 2018. "Drivers of the duration of comparative advantage in the European Union's agri-food exports," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(2), pages 51-60.
    5. Zhu Liu & Steven J. Davis & Kuishuang Feng & Klaus Hubacek & Sai Liang & Laura Diaz Anadon & Bin Chen & Jingru Liu & Jinyue Yan & Dabo Guan, 2016. "Targeted opportunities to address the climate–trade dilemma in China," Nature Climate Change, Nature, vol. 6(2), pages 201-206, February.
    6. Haoqi Qian & Shaodan Xu & Jing Cao & Feizhou Ren & Wendong Wei & Jing Meng & Libo Wu, 2021. "Air pollution reduction and climate co-benefits in China’s industries," Nature Sustainability, Nature, vol. 4(5), pages 417-425, May.
    7. Zhenci Xu & Yingjie Li & Sophia N. Chau & Thomas Dietz & Canbing Li & Luwen Wan & Jindong Zhang & Liwei Zhang & Yunkai Li & Min Gon Chung & Jianguo Liu, 2020. "Impacts of international trade on global sustainable development," Nature Sustainability, Nature, vol. 3(11), pages 964-971, November.
    8. Rong Ma & Ke Li & Yixin Guo & Bo Zhang & Xueli Zhao & Soeren Linder & ChengHe Guan & Guoqian Chen & Yujie Gan & Jing Meng, 2021. "Mitigation potential of global ammonia emissions and related health impacts in the trade network," Nature Communications, Nature, vol. 12(1), pages 1-13, December.
    9. Qi, Chaoying & Zhang, James Xiaohe, 2018. "The economic impacts of the China-Australia Free Trade Agreement - A general equilibrium analysis," China Economic Review, Elsevier, vol. 47(C), pages 1-11.
    10. Wu, Rui & Dai, Hancheng & Geng, Yong & Xie, Yang & Tian, Xu, 2019. "Impacts of export restructuring on national economy and CO2 emissions: A general equilibrium analysis for China," Applied Energy, Elsevier, vol. 248(C), pages 64-78.
    11. Lan Yang & Yutao Wang & Ranran Wang & Jiří Jaromír Klemeš & Cecília Maria Villas Bôas de Almeida & Mingzhou Jin & Xinzhu Zheng & Yuanbo Qiao, 2020. "Environmental-social-economic footprints of consumption and trade in the Asia-Pacific region," Nature Communications, Nature, vol. 11(1), pages 1-9, December.
    12. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.
    13. Rong Ma & Ke Li & Yixin Guo & Bo Zhang & Xueli Zhao & Soeren Linder & ChengHe Guan & Guoqian Chen & Yujie Gan & Jing Meng, 2021. "Publisher Correction: Mitigation potential of global ammonia emissions and related health impacts in the trade network," Nature Communications, Nature, vol. 12(1), pages 1-1, December.
    14. Pablo D Fajgelbaum & Pinelopi K Goldberg & Patrick J Kennedy & Amit K Khandelwal, 2020. "The Return to Protectionism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(1), pages 1-55.
    15. Johan Fourie, 2011. "Travel service exports as comparative advantage in South Africa," South African Journal of Economic and Management Sciences, University of Pretoria, Faculty of Economic and Management Sciences, vol. 14(2), pages 210-228, June.
    16. 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.
    17. Rutten, Martine & Shutes, Lindsay & Meijerink, Gerdien, 2013. "Sit down at the ball game: How trade barriers make the world less food secure," Food Policy, Elsevier, vol. 38(C), pages 1-10.
    18. Cui, Lianbiao & Li, Rongjing & Song, Malin & Zhu, Lei, 2019. "Can China achieve its 2030 energy development targets by fulfilling carbon intensity reduction commitments?," Energy Economics, Elsevier, vol. 83(C), pages 61-73.
    19. Dabo Guan & Daoping Wang & Stephane Hallegatte & Steven J. Davis & Jingwen Huo & Shuping Li & Yangchun Bai & Tianyang Lei & Qianyu Xue & D’Maris Coffman & Danyang Cheng & Peipei Chen & Xi Liang & Bing, 2020. "Global supply-chain effects of COVID-19 control measures," Nature Human Behaviour, Nature, vol. 4(6), pages 577-587, June.
    20. Glen Peters & Robbie Andrew & James Lennox, 2011. "Constructing An Environmentally-Extended Multi-Regional Input-Output Table Using The Gtap Database," Economic Systems Research, Taylor & Francis Journals, vol. 23(2), pages 131-152.
    21. Bruno Lanz & Thomas F. Rutherford, 2016. "GTAPINGAMS, version 9: Multiregional and small open economy models with alternative demand systems," IRENE Working Papers 16-08, IRENE Institute of Economic Research.
    22. Run Yu & Junning Cai & PingSun Leung, 2009. "The normalized revealed comparative advantage index," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 267-282, March.
    23. Jiamin Ou & Zhijiong Huang & Zbigniew Klimont & Guanglin Jia & Shaohui Zhang & Cheng Li & Jing Meng & Zhifu Mi & Heran Zheng & Yuli Shan & Peter K. K. Louie & Junyu Zheng & Dabo Guan, 2020. "Role of export industries on ozone pollution and its precursors in China," Nature Communications, Nature, vol. 11(1), pages 1-12, December.
    24. Dorninger, Christian & Hornborg, Alf & Abson, David J. & von Wehrden, Henrik & Schaffartzik, Anke & Giljum, Stefan & Engler, John-Oliver & Feller, Robert L. & Hubacek, Klaus & Wieland, Hanspeter, 2021. "Global patterns of ecologically unequal exchange: Implications for sustainability in the 21st century," Ecological Economics, Elsevier, vol. 179(C).
    25. Kailan Tian & Yu Zhang & Yuze Li & Xi Ming & Shangrong Jiang & Hongbo Duan & Cuihong Yang & Shouyang Wang, 2022. "Regional trade agreement burdens global carbon emissions mitigation," Nature Communications, Nature, vol. 13(1), pages 1-12, December.
    26. Da Zhang & Justin Caron & Niven Winchester, 2019. "Sectoral Aggregation Error in the Accounting of Energy and Emissions Embodied in Trade and Consumption," Journal of Industrial Ecology, Yale University, vol. 23(2), pages 402-411, April.
    27. Lianbiao Cui & Yi Sun & Rasa Melnikiene & Malin Song & Jianlei Mo, 2019. "Exploring the impacts of Sino–US trade disruptions with a multi-regional CGE model," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 4015-4032, January.
    28. Keisuke Nansai & Susumu Tohno & Satoru Chatani & Keiichiro Kanemoto & Shigemi Kagawa & Yasushi Kondo & Wataru Takayanagi & Manfred Lenzen, 2021. "Consumption in the G20 nations causes particulate air pollution resulting in two million premature deaths annually," Nature Communications, Nature, vol. 12(1), pages 1-12, December.
    29. Angel Aguiar & Maksym Chepeliev & Erwin L. Corong & Robert McDougall & Dominique van der Mensbrugghe, 2019. "The GTAP Data Base: Version 10," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(1), pages 1-27, June.
    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. Peng Qi & Jianlei Lang & Xiaoqi Wang & Ying Zhou & Haoyun Qi & Shuiyuan Cheng, 2024. "The Coordinated Effects of CO 2 and Air Pollutant Emission Changes Induced by Inter-Provincial Trade in China," Sustainability, MDPI, vol. 16(4), pages 1-18, February.

    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. Missbach, Leonard & Steckel, Jan Christoph & Vogt-Schilb, Adrien, 2024. "Cash transfers in the context of carbon pricing reforms in Latin America and the Caribbean," World Development, Elsevier, vol. 173(C).
    2. Zhang, Haoran & Li, Ruixiong & Cai, Xingrui & Zheng, Chaoyue & Liu, Laibao & Liu, Maodian & Zhang, Qianru & Lin, Huiming & Chen, Long & Wang, Xuejun, 2022. "Do electricity flows hamper regional economic–environmental equity?," Applied Energy, Elsevier, vol. 326(C).
    3. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2023. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Ecological Economics, Elsevier, vol. 204(PA).
    4. Nawab, Asim & Liu, Gengyuan & Meng, Fanxin & Hao, Yan & Zhang, Yan, 2019. "Urban energy-water nexus: Spatial and inter-sectoral analysis in a multi-scale economy," Ecological Modelling, Elsevier, vol. 403(C), pages 44-56.
    5. Jámbor, Attila & Tóth, Andrea Tímea & Kőröshegyi, Domonkos, 2017. "Az agrárexport versenyképessége - a nemzetközi fűszer-kereskedelem esete [Export competitiveness in agriculture: the case of the international spice trade]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1202-1223.
    6. 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.
    7. Shilong Yang & Xiao Liang & Zhichao Lou & Yanwen Tan & Abdelrahman Ali, 2024. "Analysing the consequences of Regional Comprehensive Economic Partnership on the agricultural economies of China, Australia and New Zealand," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(7), pages 362-381.
    8. Daoping Wang & Klaus Hubacek & Xi Liang & D’Maris Coffman & Stephane Hallegatte & Dabo Guan, 2021. "Reply to: Observed impacts of the COVID-19 pandemic on global trade," Nature Human Behaviour, Nature, vol. 5(3), pages 308-309, March.
    9. Yang, Xiao & Anser, Muhammad Khalid & Yusop, Zulkornain & Abbas, Shujaat & Khan, Muhammad Azhar & Zaman, Khalid, 2022. "Volatility in mineral resource pricing causes ecological footprints: A cloud on the horizon," Resources Policy, Elsevier, vol. 77(C).
    10. Meng, Fanxin & Liu, Gengyuan & Hu, Yuanchao & Su, Meirong & Yang, Zhifeng, 2018. "Urban carbon flow and structure analysis in a multi-scales economy," Energy Policy, Elsevier, vol. 121(C), pages 553-564.
    11. Wei Luo & Siyuan Kang & Sheng Hu & Lixian Su & Rui Dai, 2023. "Dual Effects of the US-China Trade War and COVID-19 on United States Imports: Transfer of China's industrial chain?," Papers 2309.02271, arXiv.org.
    12. Hanna Fałtynowicz & Jan Kaczmarczyk & Rafał Łużny & Karolina Jaroszewska & Katarzyna Pstrowska & Sylwia Hull & Marek Kułażyński & Karol Postawa, 2024. "Activated Carbons for Removing Ammonia from Piggery Vent Air: A Promising Tool for Mitigating the Environmental Impact of Large-Scale Pig Breeding," Sustainability, MDPI, vol. 16(14), pages 1-24, July.
    13. Tilsted, Joachim Peter & Bjørn, Anders & Majeau-Bettez, Guillaume & Lund, Jens Friis, 2021. "Accounting matters: Revisiting claims of decoupling and genuine green growth in Nordic countries," Ecological Economics, Elsevier, vol. 187(C).
    14. Ilaria Fusacchia, 2020. "Evaluating the Impact of the US–China Trade War on Euro Area Economies: A Tale of Global Value Chains," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(3), pages 441-468, November.
    15. Zhang, Zengkai & Zhu, Kunfu & Hewings, Geoffrey J.D., 2017. "A multi-regional input–output analysis of the pollution haven hypothesis from the perspective of global production fragmentation," Energy Economics, Elsevier, vol. 64(C), pages 13-23.
    16. Huang, Rui & Chen, Guangwu & Lv, Guonian & Malik, Arunima & Shi, Xunpeng & Xie, Xiaotian, 2020. "The effect of technology spillover on CO2 emissions embodied in China-Australia trade," Energy Policy, Elsevier, vol. 144(C).
    17. Yanelli Nunez & Jaime Benavides & Jenni A. Shearston & Elena M. Krieger & Misbath Daouda & Lucas R. F. Henneman & Erin E. McDuffie & Jeff Goldsmith & Joan A. Casey & Marianthi-Anna Kioumourtzoglou, 2024. "An environmental justice analysis of air pollution emissions in the United States from 1970 to 2010," Nature Communications, Nature, vol. 15(1), pages 1-13, December.
    18. Missbach, Leonard & Steckel, Jan Christoph & Ward, Hauke, 2023. "Assessing distributional effects of carbon pricing in Israel," Energy Policy, Elsevier, vol. 180(C).
    19. Marta Marson & Donatella Saccone & Elena Vallino, 2023. "Total trade, cereals trade and undernourishment: new empirical evidence for developing countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 299-332, May.
    20. Yongchun Liu & Junlei Zhan & Feixue Zheng & Boying Song & Yusheng Zhang & Wei Ma & Chenjie Hua & Jiali Xie & Xiaolei Bao & Chao Yan & Federico Bianchi & Tuukka Petäjä & Aijun Ding & Yu Song & Hong He , 2022. "Dust emission reduction enhanced gas-to-particle conversion of ammonia in the North China Plain," Nature Communications, Nature, vol. 13(1), pages 1-10, December.

    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:spr:endesu:v:25:y:2023:i:11:d:10.1007_s10668-022-02612-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.