Re-Calculation, Decomposition and Responsibility Sharing of Embodied Carbon Emissions in Sino-Korea Trade: A New Value-Added Perspective

Abstract

ABSTRACT Based on a noncompetitive input-output analysis, this paper estimates the embodied carbon emissions in Sino-Korean trade from 2000 to 2014 from a new value-added perspective. In addition, using structural decomposition analysis, we decompose the factors driving embodied carbon emissions and analyze the carbon emissions responsibilities that China and Korea should each bear under “shared responsibility.” Our results show that the traditional statistical method overestimates the true level of embodied carbon emissions and the overestimation rate is about 60%. Moreover, the input technology structure effect and the export scale effect are two important factors accounting for the surplus in China’s embodied carbon emissions. In addition, under the principle of “shared responsibility,” the carbon emissions values in trade are lower. This study offers a new way to scientifically allocate the responsibility of embodied carbon emissions in trade, which can ease the surplus of embodied carbon in global value chains.