Consumption-side carbon emissions and carbon unequal exchange: A perspective of domestic value chain fragmentation

Abstract

The transfer of products traded between regions is accompanied by carbon transfer. From the perspective of domestic production fragmentation, inter-regional product trade was divided into six types. Based on China's multi-regional input-output tables in 2012, 2015, and 2017, the production- and consumption-side carbon emissions under the value chains of each province were calculated. Combined with the value-added transfer under each value chain, the production- and consumption-side carbon intensity of each province was calculated and deconstructed. Finally, pollution terms of trade was introduced to analyze the environmental status of provinces and carbon unequal exchange between provinces in different value chains. The results showed that, from 2012 to 2017, the most significant contributor of carbon emissions are products consumed within the province, followed by the intermediate products traded across the province once, final products traded across the province once, and products trade across the province twice and more. From 2012 to 2017, China's total carbon emissions increased, while the carbon intensity significantly represented a decreasing trend. From the perspective of carbon intensity, most of the eastern coastal provinces were net importers of carbon emissions, while most of the northwest and middle Yellow River were net exporters of carbon emissions. In the province with a developed tertiary industry, the production chain of intermediate products traded across provinces twice and more was the main contributor to the consumption-side carbon intensity. The production chain of intermediate products traded across provinces once was the main contributors to the consumption-side carbon intensity. From the perspective of carbon unequal exchange, most of the eastern coastal provinces had environmental and economic advantages, and pollution terms of trade in some northwestern provinces exhibited a worsening trend. From the perspective of value chain, the inter-provincial carbon unequal exchange caused by the intermediate products traded across provinces once is most serious, but the inter-provincial bilateral carbon unequal exchange caused by the final products of traded across provinces once is the best. This study provides a theoretical reference for China's provinces to formulate targeted carbon emission reduction policies for different trade types of products and regional cooperation in carbon emission reduction.