Internationalization trends of carbon emission linkages: A case study on the construction sector

Abstract

Global warming and climate change have become a common concern to all countries in recent years. As an industrial sector with high energy consumption, the construction sector is facing enormous pressure to reduce carbon emissions. Given the continuous integration of the world economy, the construction sector in each country has extensive linkages with other sectors and countries. By using a multi-regional input–output (MRIO) model and hypothetical extraction method (HEM), this paper aims to further decompose the CO2 emission linkages of the global construction sector from consumption-based and production-based perspectives in order to identify the key sectors and regions related to global trade. Based on data from the World Input–Output Database from 1995 to 2009, the results indicate that the average internationalization ratios of the net backward linkage and the net forward linkage of the global construction sector increased from 37% to 46% and from 16% to 20%, respectively. The global construction sector mainly imported CO2 emissions from secondary industry and the transportation industry. The construction sector exported small amounts of CO2 emissions to other sectors both domestically and internationally. The CO2 emission flows embodied in the international trade of the construction sector mainly occurred between the USA, China, Russia, Germany, and the Rest of the World (ROW). The construction sectors of the ROW imported the largest amount of CO2 emissions from China (32.72 Mt). The largest exported CO2 emission flow was between the construction sectors of the USA and the ROW, with a value of 0.091 Mt. Based on these findings, some corresponding countermeasures are suggested, such as optimizing international trade structures, establishing a mechanism for both consumers and producers to share responsibility for carbon emission reduction, applying new environmental materials, and upgrading industrial structures by reducing dependence on high-pollution sectors.