Embodied carbon transfer between China and the Belt and Road Initiative countries

Abstract

The Belt and Road Initiative was proposed by China in 2013 to promote the interconnected development and prosperity of all participating countries. In the context of global response to climate change, understanding the embodied carbon transfer change along economic trade before and after the Belt and Road Initiative is essential to reduce carbon overall emission. In this paper, we used a multi-regional input-output model to study the embodied carbon transfer in trade between the Belt and Road countries that have signed cooperation documents with China from 2004 to 2017. The results showed that from 2004 to 2017, the growth rate that China's carbon emissions imported from other Belt and Road Initiative countries was about 1.9 times that of its exports. From 2004 to 2017, the proportion of China's carbon imports from other Belt and Road countries in China's total carbon imports increased from 3.41% to 3.73%, and exports decreased from 6.52% to 6.03%. In both 2004 and 2017, Electricity, Gas and Water sector, Heavy Industry sector, Transport sector were the three largest carbon transfer sectors in China's multilateral trade. In 2017, the embodied carbon transfer by multilateral trade among other Belt and Road countries except China increased by 15.53% compared with 2004. By comparing the characteristics of carbon transfer between China and the Belt and Road countries from 2004 to 2017, this study will provide insights for carbon emission reduction policy setting of Belt and Road Initiative countries.