CO 2 emissions embodied in China–US trade: Input–output analysis based on the emergy/dollar ratio

Abstract

To gain insight into changes in CO 2 emissions embodied in China–US trade, an input–output analysis based on the emergy/dollar ratio (EDR) is used to estimate embodied CO 2 emissions; a structural decomposition analysis (SDA) is employed to analyze the driving factors for changes in CO 2 emissions embodied in China's exports to the US during 2002–2007. The results of the input–output analysis show that net export of CO 2 emissions increased quickly from 2002 to 2005 but decreased from 2005 to 2007. These trends are due to a reduction in total CO 2 emission intensity, a decrease in the exchange rate, and small imports of embodied CO 2 emissions. The results of the SDA demonstrate that total export volume was the largest driving factor for the increase in embodied CO 2 emissions during 2002–2007, followed by intermediate input structure. Direct CO 2 emissions intensity had a negative effect on changes in embodied CO 2 emissions. The results suggest that China should establish a framework for allocating emission responsibilities, enhance energy efficiency, and improve intermediate input structure.