Study on the CO2 emissions embodied in the trade of China’s steel industry: based on the input–output model

Abstract

The impact of trade on the environment and the climate has become a focus of attention. Tending to develop industries with higher added values, developed countries rely on importing high energy consumption goods from developing countries, and however, some CO2 emissions are embodied in the process of import. Currently, the accounting method of the territorial responsibility used to get the international data of greenhouse gas inventories ignores the difference between domestic consumption and export demands. Thus, developing countries bear the responsibility of pollution emissions from the export. The steel industry is an important basic industry of China’s national economy as well as a vital part in the industrial system. With the expansion of trade scale, the impact of the export and import of China’s steel on CO2 emissions is growing. This paper studied the embodied CO2 emissions in the trade of China’s steel from 2005 to 2014, using the input–output model and the trade data of the China’s steel imports and exports. The results indicate that (1) the complete CO2 emissions of China’s steel industry are high. (2) The increase in the export scale makes the embodied CO2 emissions in the trade of China’s steel export increase, and (3) China is a net exporter of CO2 emissions in the steel trade. Especially after 2007, the value of China’s steel exports has been larger than that of China’s steel imports, so China had borne much CO2 emissions responsibility in the trade of China’s steel. Therefore, this paper puts forward that, in the future, the export structure of goods should be optimized into the high-tech products with the high added value, low energy consumption and low carbon emissions, and meanwhile, service industry is promoted to improve technical support to reduce CO2 emissions in the steel industry.