The impact of the COVID-19 pandemic on global trade-embodied carbon emissions

Abstract

We evaluate the response of global supply chains to carbon emissions through compiling multi-regional input-output (MRIO) models for import and export shocks in 14 countries/territories dominated by the COVID-19 crisis. Instead of traditional production-based inventories, we achieve CO2 emissions inventories based on intermediate inputs and final consumption to analyze the connected environmental impacts. In addition, we adopt the available data up to date to construct inventories of carbon emissions involved in imports and exports from different sectors. The results show that global carbon emissions could be decreased by 6.01% during the COVID-19, while export carbon emissions remained basically unchanged. As a result, imported carbon emissions fell by 5.2%, with the energy products sector most affected by the pandemic. Transport sector witnessed 18.42% carbon emission reduction. The impact of developing countries with a large proportion of resource-based industries is comparatively higher than that of developed countries with the technological advantage. International trade plays a crucial role in the choice of supply chain partners to control carbon emissions. Building a sustainable supply chain and reducing the “trade carbon deficit” between countries/regions requires the coordination of all departments of each country/region to promote the trade of energy-saving products, environmental protection services and environmental services.