Which industrial path contributed to CO2 transfer and emissions slowing-down of China and the United States most in international trade?

Abstract

Carbon transfer in international trade has triggered disputes on environmental equity between developed and developing countries. Hence, it is urgent to make it clear the carbon transfer process of international trade between China and the United States, explore the adjustment plan of emission reduction responsibility and formulate targeted emission reduction measures. These will play an important leading and demonstration effect in addressing global warming and coordinating international carbon reduction. This study built a CO2 international trade transfer network model of China and the United States. Based on identifying the carbon transfer path flowing from primary product sector to final production sector, and then to final consumption, we analyzed the industrial association relationship and distribution differences between China and the United States with external countries and regions. Lastly, we put forward emission reduction policy implication in industrial scale. The key paths of China and the United States are concentrated in the two export and import transfer types respectively. Among the key paths of China's bilateral primary production export type, paths from domestic Electricity, Gas and Water to foreign Construction accounted for the largest 40% share. As for the United States, transfer type of bilateral final production import is the most prominent, and path number and flow from foreign Transport to domestic Public Administration both accounted for more than 30%. Based on shared responsibility to adjust the emission reduction tasks under the Paris Agreement, China and the US will allow to emit 10% more and reduce 6% more, reaching 54% and 25% respectively. Taking into full consideration the national economic development level and the differences in the production technology level of industrial sectors, as well as the upstream and downstream related sectors' relationship, the refined emission reduction strategy is proposed from different aspects, such as technical assistance, financial support, import control, technology sharing and consumption transformation.