A justice and innovative way ahead of consumption-based emission accounting approach

Low carbon cities in 2050? GHG emissions of European cities using production-based and consumption-based emission accounting methods

Implications of the consumption-based accounting for future national emissions budgets

Consumption-based versus production-based accounting of CO2 emissions: Is there evidence for carbon leakage?

Analysis of transmission expansion planning considering consumption-based carbon emission accounting

Consumption-based accounting and the trade-carbon emissions nexus

Consumption-based emission accounting for Chinese cities

This paper argues that, unlike the production-based emissions accounting (on which emissions are attributed to producers of goods and services), the consumption-based emissions accounting (on which emissions are attributed to consumers of these goods and services) can solve the problem of historical emissions. This problem concerns the question of how to assign remedial responsibility for emissions that were made by people who are now dead. Since historical emissions are embedded in the goods consumed by present consumers, and since present consumers can (unlike past producers) do something about their emissions, a consumption-based accounting can contribute to solving the climate crisis.

Traditional consumption-based greenhouse gas emissions accounting attributed the gap between consumption-based and production-based emissions to international trade. Yet few attempts have analyzed the temporal deviation between current emissions and future consumption, which can be explained through changes in capital stock. Here we develop a dynamic model to incorporate capital stock change in consumption-based accounting. The new model is applied using global data for 1995–2009. Our results show that global emissions embodied in consumption determined by the new model are smaller than those obtained from the traditional model. The emissions embodied in global capital stock increased steadily during the period. However, capital plays very different roles in shaping consumption-based emissions for economies with different development characteristics. As a result, the dynamic model yields similar consumption-based emissions estimation for many developed countries comparing with the traditional model, but it highlights the dynamics of fast-developing countries.

Global GHG emissions continue to rise, with nearly a quarter of it due to trade that is not currently captured within global climate policy. In the context of current trade patterns and limited global cooperation on climate change, the feasibility of consumption-based emissions accounting to contribute to a more comprehensive (national) policy framework in the UK is investigated. Consumption-based emissions results for the UK from a range of models are presented, their technical robustness is assessed, and their potential application in national climate policy is examined using examples of policies designed to reduce carbon leakage and to address high levels of consumption. It is shown that there is a need to include consumption-based emissions as a complementary indicator to the current approach of measuring territorial emissions. Methods are shown to be robust enough to measure progress on climate change and develop and inform mitigation policy. Finally, some suggestions are made for future policy-oriented research in the area of consumption-based accounting that will facilitate its application to policy. Policy relevance Emissions embodied in trade are rapidly increasing and there is thus a growing gap between production emissions and the emissions associated with consumption. This is a growing concern due to the absence of a global cap and significant variation in country-level mitigation ambitions. Robust measurements of consumption-based emissions are possible and provide new insights into policy options. This includes trade-related policy (e.g. border carbon adjustments) and domestic policies (e.g. resource efficiency strategies). As climate policy targets deepen, there is a need for a broad range of policy options in addition to production and technological solutions. Consumption-based emissions are complementary to production-based emissions inventories, which are still the most accurate estimate for aggregated emissions at the global level. However, without consumption-based approaches, territorial emissions alone will not provide a complete picture of progress in regional and national emissions reduction.

Exploring the characteristics of production-based and consumption-based carbon emissions of major economies: A multiple-dimension comparison

This paper considers a recently developed consumption-based carbon emissions database from which emissions calculations are made based on the domestic use of fossil fuels plus the embodied emissions from imports minus exports, to test directly for the importance of trade in national emissions. The People’s Republic of China (PRC) alone is responsible for over half the global outflows of carbon via trade. The econometric estimations—which focused on a panel of 20 Asian countries—determined that: (i) trade flows were significant for consumption-based emissions but not for territory-based emissions; and (ii) exports and imports offset each other in that exports lower consumption-based emissions, whereas imports increase them. Hence, all countries should have both an interest and a responsibility to help lower the carbon intensity of energy in countries that are particularly important for global carbon transfers—the PRC and India.

The quantification of greenhouse gas (GHG) emissions is increasingly important in spatial planning for regions, cities, and areas. The combination of territorial and consumption-based accounting (CBA) approaches can currently be considered best practice for calculating GHG emissions at sub-national levels, in terms of informing local decision-making about the different climate impacts of spatial planning policies, both within the boundaries of a given region and for the inhabitants of that region. This study introduces four European case studies that were conducted using the two quantification approaches to assess the climate impacts of locally relevant planning policies. The case studies represent different scales of spatial planning, different European planning systems, and different situations in terms of data availability. Territorial results are not suitable for inter-regional comparison, but rather for internal monitoring, while CBA allows for comparison and provides a comprehensive picture of the global carbon footprint of residents, however, with indications that are more difficult to link to spatial planning decisions. Assessing impacts, and in particular interpreting results, requires both methodological understanding and knowledge of the local context. The results of the case studies show that setting climate targets and monitoring the success of climate action through a single net emissions figure can give false indications. The study shows that the two approaches to quantifying GHG emissions provide complementary perspectives on GHG emissions at the sub-national level and thus provide a more thorough understanding of the GHG emission patterns associated with spatial planning policies. The identification of the regional differences in GHG emission sources and mitigation potentials are the main functions of sub-national GHG inventories and the impact assessment for spatial planning. Harmonization of the data collection for sub-national GHG inventories and the transparency of underlying assumptions would greatly support the coherence of climate action and the implications to spatial planning.

Understanding the consumption-based accounting (CBA), production-based accounting (PBA), and emissions embodied in trade is an important prerequisite for designing climate mitigation policies. Environmentally extended input–output (EEIO) models have been developed to evaluate the linkages between economic activities and environmental impacts as well as the embodied emissions in goods and services that are traded between countries. In this study, an environmentally extended global multi-regional input–output (EE GMRIO) analysis is performed to calculate Turkey’s CBA emissions and import-based embodied emissions for the year 2015 using the Eora26 database, which is a simplified version of the Eora database adapted to 26 economic sectors. The key sectors and sectoral carbon intensities of countries are determined in terms of embodied emissions in imports for household consumption. Our results indicate that Turkey was a net importer of greenhouse gas (GHG) emissions in 2015 and about 10% of total emissions of the final consumption in Turkey have occurred in other countries. The dominant contributing sectors to a nation’s GHG emissions can be quite different for the CBA and PBA approaches and the efforts to reduce GHG emissions requires a holistic approach. Import-based household emissions are assessed in terms of countries, sector and GHG intensities. Our results indicate that Turkey was a net importer of GHG emissions in 2015 with its approximately 10% of the total and 7.7% of household final consumption emissions having occurred in other countries. This also suggests that imported goods and services for household consumption have been produced in those countries with relatively low emission intensities. Considering Turkey’s emissions reduction targets, these results provide methodological benefits that will enhance national efforts by giving invaluable inputs about the emission intensity of imported and exported goods and better guidance to policy makers about future strategies for low-carbon manufacturing and shifting consumption patterns.

By adopting the consumption-based accounting (CBA) method of carbon emissions based on national carbon intensity (NCI), using the International Trade Centre (ITC) database, the Emissions Database for Global Atmospheric Research (EDGAR), and the World Bank database, and taking 13 countries and regions including the European Union (EU) countries and the United States (US) as research samples, this paper conducts an accounting of the embodied carbon in trade between China and other major economies in the world, clarifies the responsibilities China has taken for foreign consumption-based carbon emissions, and analyzes the various driving factors of China’s embodied carbon in exports. The findings are as follows: (i) Most of the developed economies have higher consumption-based emissions than production-based emissions, which is contrary to most of the developing economies, with developing countries bearing responsibilities for 15–20% of the consumption-based carbon emissions for developed countries; (ii) the carbon emissions of countries and regions are closely related to the embodied carbon in trade, with a correlation coefficient of 0.96. (iii) China has taken responsibility for a large amount of carbon emissions from foreign consumer demand, most of which are from the US, the EU, ASEAN, and Japan, respectively accounting for 3.8%, 3.5%, 2.3%, and 1.2% of China’s production-based carbon emissions in 2019; (iv) technique effect is the main driving factor for China’s embodied carbon in trade, while the specific driving factors vary by industry. Based on the above analysis, it is suggested that China should: (i) consider the trade factor in its efforts to achieve carbon peaking and carbon neutrality; (ii) adopt differentiated measures to reduce trade-related emissions for specific industries; (iii) fully consider China’s demand for carbon peaking and carbon neutrality in international negotiations; (iv) give more support to the research on and measurement of consumption-based carbon emissions.

Quantitative evaluation of time-series GHG emissions by sector and region using consumption-based accounting