Abstract
China is the key player in the globalization era and is eliminating its intra-national trade barrier. This process will affect interprovincial CO2 flows. This study recalculates interprovincial CO2 flows in China by using the latest MRIO table and applies a gravity model to assess how market segmentation affects interprovincial CO2 flows. Results show that the total volume of interprovincial embodied CO2 flow did not increase excessively from 2007 to 2012, but the pattern of embodied CO2 flow had changed a lot. Market segmentation significantly decreased the interprovincial embodied CO2 flows in China and within its sub-regions. At interregional level, market segmentation’s negative effect was significant between Central and Western China. Other variables such as geographical distance showed a significant negative impact on interprovincial embodied CO2 flow in China. On the basis of our results, we raise some relevant policies to deal with the environmental inequality caused by the decrease in market segmentation.
Highlights
During China’s planned economy, the central government emphasized on planning, autarky, and provincial self-sufficiency, which resulted in a relatively independent fiscal system at the provincial level and a certain degree of market segmentation [1]
This kind of domestic market segmentation was gradually eliminated as the transportation infrastructure developed and the whole economy grown since the reform and opening up in 1978
Using panel data of interprovincial embodied CO2 flow and market segmentation, in this study, we explore the following questions: Does market segmentation impact the interregional CO2 flow? How would this impact be reflected in the different regional level? By answering these questions, this paper makes contributions in the following three aspects: (1) Previous studies generally focus on the impact of market segmentation on commodity flow but lack research on virtual product flow
Summary
During China’s planned economy, the central government emphasized on planning, autarky, and provincial self-sufficiency, which resulted in a relatively independent fiscal system at the provincial level and a certain degree of market segmentation (i.e., set up entry barriers and resource outflow restrictions) [1]. This kind of domestic market segmentation was gradually eliminated as the transportation infrastructure developed and the whole economy grown since the reform and opening up in 1978. China has become the world’s largest carbon emitter since 2006, playing an essential role in global carbon reduction. Many studies have demonstrated the interregional carbon flows embodied in interregional
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