CO2 emissions embodied in trade: Evidence for Hong Kong SAR

Abstract

Abstract Cities play an important role in carbon emissions reduction and climate change mitigation. In this study, we examine the CO2 emissions embodied in the imports and exports of the Hong Kong special administrative region (SAR) from 1990 to 2015 using the emissions embodied in bilateral trade (EEBT) method. The results show that Hong Kong SAR has been a net CO2 importer and Mainland China plays a dominating role in the embodied CO2 emissions of Hong Kong SAR. The sectors with high imported CO2 emissions are mainly the energy sectors, such as electricity, heat, gas and water production and supply. Population density, GDP per capita, and trade openness have significantly positive effects on net CO2 emissions increases in Hong Kong SAR, with population density taking the leading role. Population density increases by 1%, total net CO2 emissions increase by 4%. Population slowdown scenario simulation results show that net CO2 emissions of Hong Kong SAR could be reduced by 5.5%. Whereas, net CO2 emissions of Hong Kong SAR could increase by 8.7% in the accelerated economic development scenario. Therefore, to reduce CO2 emissions, Hong Kong SAR need control its population, develop the circular economy, and promote green lifestyle and consumption patterns.