Abstract

This study examines the influence of US–China trade on national and global emissions of carbon dioxide (CO 2). The three basic questions are as follows: (1) What amount of CO 2 emissions is avoided in the US by importing Chinese goods? (2) How much are CO 2 emissions in China increased as a result of the production of goods for export to the US? and (3) What are the impacts of US–China trade on global CO 2 emissions? Our initial findings reveal that during 1997–2003: (1) US CO 2 emissions would have increased from 3% to 6% if the goods imported from China had been produced in the US, (2) About 7%–14% of China's current CO 2 emissions were a result of producing exports for US consumers, and (3) US–China trade has increased global CO 2 emissions by an estimated 720 million metric tons. We suggest that the export of US technologies and expertise related to clean production and energy efficiency to China could be a “win–win” strategy for both countries for reducing their trade imbalance and mitigating global CO 2 emissions. Improved international accounting methodologies for assigning responsibility for CO 2 emissions must be designed to account for the dynamic nature of international trade.

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