Analysis on Carbon Emission Situation of Chinese Export Industry Based on Input-Output Model

This paper considers a carbon emission cap and trade market, where the carbon emission cap for each entity (either government or firm) is allocated first and then the carbon trading price is decided interdependently in the carbon trading market among the non-cooperative entities which make their production decision. We assume that there are n entities emitting carbon during the production process. After allocating the carbon (emission) cap for each participating entity in the carbon cap and trade market, each participant makes a production decision using the Newsvendor model given carbon trading price determined in the carbon trading market and trades some amount of its carbon emission, if its carbon emission is below or above its own carbon cap. Here, the carbon trading price depends on how carbon caps over the entities are allocated, since the carbon trading price is determined through the carbon (emission) trading market, which considers total amount of carbon emission being equal to total carbon caps over entities and some fraction of total carbon emission should be from each entity participating in the carbon cap and trade market. Thus, we can see the interdependency among the production decision, carbon cap and carbon trading price. We model this as a non-cooperative Stackelberg game in which carbon cap for each entity is allocated in the first stage and each entity’s production quantity is decided in the second stage considering the carbon trading price determined in the carbon trading market. First, we show the monotonic property of the carbon trading price and each entity’s production over the carbon cap allocation. In addition, we show that there exists an optimality condition for the carbon cap allocation. Using this optimality condition, we provide various results for carbon cap and trade market.

Carbon pricing is about the explicit pricing of greenhouse gas (GHG) emissions, of which carbon dioxide is the most important. GHG emissions, which are normally measured in tonnes of carbon dioxide equivalent units, are responsible for global warming and hence the greatest environmental externality of our age. Carbon pricing is a mechanism for making society account for the external damage caused by carbon emissions in economic decision making. There are two main ways of pricing carbon dioxide emissions, either via a carbon tax or via the introduction of an emissions trading scheme whereby those emitting carbon into the atmosphere are required to surrender permits which reflect the quantity of emissions they are responsible for. These emission permits are tradeable and hence command a price and, in some respects, operate in a similar way to a carbon tax. Thus, we will discuss both carbon pricing and emissions trading, as the literature on both is closely related. Emissions trading exists for certain other pollutants (such as sulphur dioxide) and we will discuss some of the literature related to this. However, most of the literature on emissions trading relates to carbon dioxide emissions, as these are by far the most valuable traded emissions globally. The literature on carbon pricing and emissions trading is wide ranging and constantly being updated with new analyses. Much of the literature is written by economists who are seeking to apply market-based approaches to the solution of environmental problems. The article starts by looking at the general context in which carbon pricing and emissions trading sits before discussing introductory texts which relate to the subject and going on to introduce the relevant classic literature in environmental economics. It then proceeds to more applied literature, beginning with discussions of early examples of emissions trading and carbon taxation, before continuing to studies of the impact of carbon pricing and emissions trading and those which explain the nature of the schemes we observe. The article continues with literature which looks at the Europe Union Emissions Trading Scheme (EU ETS) for GHGs and other important carbon pricing schemes. It then moves on to the literature on the prospects for a global carbon price, on interactions with other climate policies, on distributional concerns about the imposition of a price on carbon. Finally, it concludes with an introduction to relevant official publications and sources of data on carbon emissions and carbon prices.

With the increase in international trade, more attention has been given to quantifying the impacts of international trade on energy use and carbon emissions. Input-output analysis is a suitable tool for assessing resources or pollutants embodied in trade and it has become a critical tool for performing such analysis. This study estimated the national and sectoral carbon emissions embodied in Chinese international trade using the latest available China input-output table of 2007. The results showed that a significant exporting behavior of embodied carbon emissions existed in China’s trade. Over 1/3 of the emissions in Chinese domestic production processes were generated for exports in 2007. The net balance of emissions embodied in exports and imports accounted for nearly 30% of China’s domestic emissions, which means that any policy made to increase the exports would result in a significant growth of China’s domestic emissions. Since over half of China’s export trade is processing trade, the re-exported emissions could not be overlooked; otherwise, it would hard to capture the actual emissions generated abroad to obtain China’s domestic consumption. The enlargement of export scale is a primary driven factor to the rapid growth of China’s exported emissions. It is necessary for China to adjust its economic and industrial structure to reduce the dependence of economic growth on the export trade. However, when adjusting industry structures or making policies on carbon emission reduction, it will be more reasonable to consider the relationship between production and consumption, rather than just focus on the emission values of sectors’ direct production, as a large part of carbon emissions emitted by the principal direct polluters were generated to obtain the products which were required by other sectors.

Purpose The construction industry, contributing approximately 39% of global carbon emissions, faces challenges to reach net-zero emissions by 2050. Traditional methods for estimating and managing carbon emissions suffer from inaccuracies, low transparency and data integrity issues, highlighting the need for trustworthy and efficient solutions. This paper aims to demonstrate how blockchains can enhance the accuracy of tracking carbon emissions and streamlining carbon trading, providing a robust system to manage and reduce carbon emissions effectively. Design/methodology/approach A case study-based approach is adopted to develop a blockchain-based system (EcoConstruct) to track carbon emissions and circularity of construction materials and facilitate carbon trading in the industry. The implementation uses smart contract technology and the Beneficial Assets Ownership protocol in the Tezos blockchain to validate carbon emission tracking, carbon trading and circularity criteria. The system was evaluated and validated through expert feedback, ensuring its practical applicability and effectiveness. Findings EcoConstruct demonstrates advancements in transparency, data integrity and efficiency in carbon estimation and trading. The system’s immutable ledger securely stores carbon emissions and their compensations using non-fungible tokens called carbon rewards. This system facilitates transparent and accountable carbon trading among stakeholders (clients, contractors and material suppliers). The findings highlight the potential of blockchains to overcome current challenges in carbon emissions management and trading in the construction industry. Originality/value EcoConstruct provides a novel blockchain-based solution for managing carbon emissions and promoting sustainability in construction, moving beyond conceptualisation by leveraging blockchain’s decentralisation, immutability, transparency and security to enhance carbon estimation accuracy and streamline carbon trading.

Carbon markets devolve governance to external institutions and displace power from sovereign states. Major producers in these markets, notably China, have expressed concern about the adverse implications for national interests and sovereignty associated with selling off the rights to emit carbon emissions abroad. This article suggests that such concern has shaped the discursive context in which emission trading schemes have gained popularity in the country. Our discourse analysis shows that notions of market power are made manifest as a powerful storyline. In the Chinese language, “power,” “sovereignty,” and “rights” all use the same character. The storyline captures all these expressions and allows for a positive view about active engagement in carbon trading as a way to protect development rights and redeem carbon sovereignty. Thus, the contested policy of emissions trading becomes embedded in the more appealing narrative of national development and made politically attractive, despite unfavorable realities against it.

CO2 emissions are increasing with the expansion of export trade. Against the backdrop of the prominent trend of decarbonization in the global economy, the question of how to rise to the occasion to maintain the advantages of international trade, as well as achieving sustainable growth in export trade, has become an urgent issue for us to consider. This paper uses empirical analysis to propose and establish an econometric model of the symbiosis between carbon emissions and export trade dependence, economic structural changes and clean technology changes, based on the environmental Kuznets curve and using time series data for Guangdong Province from 2000 to 2021. The study found that there is a long-term, stable equilibrium relationship between the scale effect and technology effect on carbon emissions, and a positive relationship between the structural effect and carbon emissions. The study then constructed a symbiotic system of exports and carbon emissions from a symbiotic perspective. The Lotka–Volterra MCGP model was used to measure the evolution of the export and carbon emission symbiosis system from the optimization of three perspectives: the scale and structure of energy consumption under the dual constraints of export trade and carbon emissions, the scale of export trade under the carbon emission constraints, and the scale of carbon emissions under the export trade constraints. The results show that there is considerable room for improvement in the structure of energy consumption and carbon emissions in the current Guangdong export trade process. At the same time, this improvement can be achieved by adjusting the energy consumption structure and improving the efficiency of the system without changing the scale effect, technology effect or structural effect.

To control growing environmental problems, the pollution rights trading (PRT) center was established in Jiaxing in 2007, and China officially joined the carbon emission reduction market (NCET) in 2011. Since power enterprises are the main participants in the NCET market and PRT market, the integrated effect of the NCET market and PRT market on power enterprise profit and the regional environment is one of the major issues that needs to be taken into consideration. Based on system dynamics (SD) theory, we propose an NCET-PRT simulation model for power enterprises in Chongqing. Through analyzing parameters of carbon trading price, free ratio, and emission trading prices, 12 different simulation scenarios are configured for sensitivity analysis. Based on the simulation results, the following observations can be obtained: (1) NCET and PRT can effectively promote the performance of enterprises’ carbon emissions reduction and regional pollutant emission reduction but will have a minor negative impact on the industrial economy at the same time; (2) The trading mechanism is interactive; if the carbon emissions trading (NCET) mechanism is implemented separately, the emission of pollutants will be reduced significantly. However, the implementation of pollution rights trading (PRT) alone cannot significantly reduce CO2 emissions; (3) At an appropriate level, NCET and PRT can be enhanced to achieve a maximum emissions reduction effect at a minimum economic cost.

There’s a market growing in the United States, but unlike markets that trade in tangible commodities, this one trades in the absence of something no one wants: greenhouse gases in the atmosphere. Hundreds of companies make it possible for individuals, organizations, businesses, and even events such as rock music festivals to proclaim themselves carbon-neutral by paying someone else to reduce their emissions. Worried about your carbon footprint? No problem. For fees of US$2–50 per ton of “avoided emissions,” an offset provider will funnel your money into an activity or technology that keeps greenhouse gases out of the atmosphere. The question is, are offset buyers really getting what they paid for?

The Problem of Social Cost

Carbon Trading: Who Gets What, When, and How?

The export trade of China, the factory of the world, promotes economic growth while increasing carbon emissions. This study integrates China’s multi-regional input–output table and the world input–output table to explore the international transfer-in effect and foreign spillover effect of carbon emissions caused by China’s export trade. A structural decomposition analysis model is also used to identify the influencing factors of carbon emissions caused by China’s export trade of intermediate and final products. Results show that: (1) 45.13–58.87% of the transfer-in carbon emissions resulting from China’s export trade are caused by developed countries and 41.13–54.87% by developing countries; (2) the foreign spillover effect caused by China’s export trade is primarily associated with developing countries, accounting for 63.79–69.61%; (3) carbon emissions caused by the export of intermediate products (final products) in China are primarily caused by the scale effect (industrial linkage). China should adjust the structure of its export trade in accordance with the characteristics of embodied carbon emissions in export trade to achieve low-carbon development.

The launch of the national carbon emissions trading market in China is a policy to carry out the Beautiful China initiative and to establish a low-carbon economic development system that promotes carbon emission and waste reduction. In order to detect the carbon metabolic processes of the pilot and nonpilot municipalities or provinces in the northern region of China， the theory of urban carbon metabolism and the methods of input-output analysis and ecological network analysis were introduced and used. The results showed that the direct carbon emissions of Beijing and Tianjin had decreased， but their embodied carbon emissions had increased since 2012. The direct and embodied carbon emissions of the pilot sectors in Beijing and Tianjin had the same trend； specifically， the emissions of the sectors of mining and washing of coal， extraction of petroleum and natural gas， and manufacture of non-metallic mineral products decreased significantly， but the sectors of production and supply of electric power and steam with high carbon emission increased. The same trend of the embodied carbon emission intensities of sectors with that of their embodied carbon emissions verified that the embodied added values were not growing with the promotion of the carbon emission trading market. Subsequently， the embodied carbon emission of the pilot sectors in all the municipalities and provinces of the northern region were all contributed mainly by the emissions embodied by a path length less than 6； therefore， it showed that more attention should be paid to the trade among sectors with a path length less than 6 and reducing their carbon emissions. Furthermore， from 2007 to 2012， products or service trading among sectors mostly concentrated on sectors within one municipality or province， and these products or services had the characteristics of low carbon emission. Since 2012， the integration development of the Beijing-Tianjin-Hebei urban agglomeration and the new regional economic patterns established in the northern region both promoted the trading across provinces and across sectors. This research is based on the background of the carbon emission trading policy and aims to build a methodology to identify the key actors and paths in a metabolic system. This could provide a scientific basis for regional policy implementation and regional long-term sustainable development.

With the continuous development of global economic and trade activities, environmental problems have become an important factor restricting the sustainable development of all countries. How to realize the coordinated development of international trade and environmental protection has become a major issue facing the international community. Since China joined the WTO, its share of international trade has been increasing continuously. In order to deeply analyze the influence of international carbon emission trading policy on domestic carbon emissions, we use an input–output model and a GTAP analysis method to theoretically calculate the carbon emissions of the international trade of various departments in Shandong Province. At the same time, the implicit carbon emission index of various industries in 2022 is calculated through the direct energy consumption coefficient. The results show that there are significant differences in the impact of the carbon tariff system on different industries. In terms of the carbon emission index, the food processing industry showed a decrease of 18.99 Mt, while the implied carbon emission of the tobacco, textile and leather manufacturing industry reached 30.56 Mt due to the continuous expansion of trade scale. In contrast, the implied carbon emission level of the metal product processing industry reached 5.3 Mt, while the carbon emission of traditional trading industries such as coal mining was almost unaffected by international trade, and its carbon emission index reached the highest level of 5.89 in 2020. In terms of trade impact, high-trade industries such as the food processing industry are significantly affected by the carbon tariff policy, and their share has dropped from 5.89% to 3.95% in the past decade. The carbon emissions generated by GDP growth established by the GTAP model are more convincing. This model can directly reflect the energy efficiency of a region from the side. Based on the present situation of international trade, this paper analyzes the inequality of the current carbon tariff system, and puts forward some policies to optimize the energy structure to reduce carbon emissions and expand domestic demand to reduce the dependence on international trade. Through the GTAP model, we put forward policy suggestions to optimize the energy structure to reduce carbon emissions and the dependence on international trade by expanding domestic demand.

Green logistics is an important part of green supply chain management, and its green and low-carbon level greatly affects the level of green supply chain management. In order to achieve China's targets of carbon peaking and carbon neutrality, and to study the emission reduction path of the logistics industry under green supply chain management, this paper uses the scalable STIRPAT model and ridge regression to analyze the influencing factors of carbon emissions in the logistics industry; Taking the relevant data from 2000 to 2020 as an example, combined with the scenario analysis method, this paper conducts an empirical study on the development trend of carbon emissions in China's logistics industry in the future. The results show that: under the low-carbon and enhanced low-carbon scenarios, China's logistics industry can achieve the carbon peak target of 876.6 MtCO2 and 817.02 MtCO2 respectively. Carbon emissions can be reduced to 234.9 MtCO2 by 2060 in the Enhanced Low Carbon Scenario. There is still a certain distance between neutralization. In the meantime, according to the forecast results, this paper, from the perspective of green supply chain management, from the three directions of carbon trading, reverse logistics and emission reduction costs, gives suggestions on the emission reduction path of China's logistics industry under the carbon peaking and carbon neutrality goals: consider early Incorporate the logistics industry into the carbon trading market; increase support and accelerate the development of reverse logistics; increase scientific research investment in clean energy, and promote new energy vehicles. This paper innovatively stands in the perspective of supply chain management, and improves the analysis of influencing factors. For the single industry of logistics industry, the carbon peaking and carbon neutrality goals goal is put in a model, which can better reflect the complete trend and target Provide low-carbon directions and suggestions. In all, these findings contribute to the formulation and implementation of sound policies to help China achieve the carbon peaking and carbon neutrality goals.

Carbon Pricing: Design, Experiences and Issues, edited by LarryKreiser, MikaelAndersen, BirgitteOlsen, StefanSpeck, JanetMilne and HopeAshiabor. Published by Edward Elgar Publishing, Cheltenham, UK, 2015, 256 pages. ISBN: 9781785360220, ₤75.