The change pattern and driving factors of embodied SO2 emissions in China’s inter-provincial trade

Abstract

This study analyzes the change pattern and driving factors of SO2 emissions embodied in inter-provincial trade in China during 2007–2012 based on environmentally extended input-output analysis (EEIOA) and structural decomposition analysis (SDA). The results show that: (1) SO2 emissions outsourced from highly developed coastal provinces to less developed inland provinces decreased sharply since 2007 while those from under-developed provinces like Henan and Hebei to the energy intensive provinces including Shanxi and Inner Mongolia have seen a significant increase. (2) The increased SO2 emissions induced by final demand of construction and heavy sectors in less developed provinces in central and western China have transferred to mining and energy production sectors in the northwest and northern China majorly through intermediate products trade. (3) The rising final demands for local finished and imported final products caused by investment demand are the main driver for the increase of SO2 emissions embodied in domestic imports in underdeveloped provinces in central and western China. Compared to the less developed inland provinces, the production and consumption modes of the developed coastal provinces are in transition to more favorable ways of reducing emissions embodied in domestic imports. Therefore, environment protection should center on reducing SO2 emissions transfer among less developed provinces caused by investment demands, more specifically, less developed provinces need to rationally plan the development of construction and heavy sectors. Meanwhile, provinces rich in resources and energy need to cut down SO2 emission through technical innovation.