Driving forces of energy embodied in China-EU manufacturing trade from 1995 to 2011

Abstract

In this study, an empirically validated Environmental Input-Output Life Cycle Assessment (EIO-LCA) model was applied to calculate and decompose the amount of energy embodied in the manufacturing trade between China and the European Union (EU) in 1995–2011. The main findings are as follows: China’s entry to the WTO (World Trade Organization) in 2001 has spurred the growth of energy embodied in exports from China to the EU, while environmental policies issued by Chinese government since 2006 have pulled it down. The export sectoral structure change and energy consumption intensity decrease are two key drivers of China’s embodied energy export changes. China’s embodied energy exports are mainly contributed by coal and other fossil fuels. Germany is the largest importer of China’s embodied energy among the EU member states. This study can provide data support and reference basis for international trade and climate negotiations, and help Chinese government to improve its policies on industrial structure, primary energy structure and export state structure.