Carbon emission intensity embodied in trade and its driving factors from the perspective of global value chain.

Abstract

As a global problem, climate warming has received widespread attention recently. With trade development and labor division deepening, there exist large differences in carbon emission intensity (CEI) embodied in different trade patterns. Assessing environmental costs of different trade patterns is the core issue for policy makers. We decompose the overall CEI embodied in trade into CEI embodied in final goods trade, domestic trade, traditional intermediate trade, and global value chain trade. Using global multi-region input-output table provided by the WIOD database, we calculate the CEI embodied in different trade patterns during 1995-2014. Further, we analyze the influencing factors of CEI embodied in different trade patterns. We find that CEI embodied in domestic trade is lower than that of international trade. All kinds of embodied CEI in developing countries are higher than that in developed countries. Furthermore, the driving factors of the overall embodied CEI, including domestic trade and international trade, are population, PGDP, energy intensity, and trade. The expansion of industrialization can effectively reduce the CEI embodied in trade of developing countries. The increase of PGDP and industrialization can effectively reduce the CEI embodied in trade related to global value chain and traditional intermediate trade, while only the increase of PGDP can effectively reduce the CEI embodied in domestic trade and final goods trade. Population can reduce the embodied CEI in trade related to global value chain and traditional intermediate trade of developed countries. Economic development can almost promote the reduction of the CEI embodied in all trade patterns. Although industrialization has insignificant impact on the CEI embodied in final goods trade of the developed countries, it can reduce such CEI of developing countries.