Interprovincial Trade Research Articles

Atmospheric Mercury Outflow from China and Interprovincial Trade.

Mercury (Hg) is characterized by its ability to migrate between continents and its adverse effects on human health, arousing great concern around the world. The transboundary transport of large anthropogenic Hg emissions from China has attracted particular attention, especially from neighboring countries. Here, we combine an atmospheric transport model, a mass budget analysis, and a multiregional input-output model to simulate the atmospheric Hg outflow from China and investigate the impacts of Chinese interprovincial trade on the outflow. The results show outflows of 423.0 Mg of anthropogenic Hg, consisting of 65.9% of the total Chinese anthropogenic emissions, from China in 2010. Chinese interprovincial trade promotes the transfer of atmospheric outflow from the eastern terrestrial boundary (-6.4 Mg year-1) to the western terrestrial boundary (+4.5 Mg year-1) and a net decrease in the atmospheric outflow for the whole boundary, reducing the chance of risks to foreign countries derived from transboundary Hg pollution from China. These impacts of interprovincial trade will be amplified due to the expected strengthened interprovincial trade in the future. The synergistic promotional effects of interprovincial trade versus Hg controls should be considered to reduce the transboundary Hg pollution from China.

The electricity-water nexus in Chinese electric trade system

A great amount of electricity generation exerts a tremendous pressure on China's water resources. The spatial mismatch between primary energy and water in China aggravates the pressure of water resources and results in virtual water transfers from drier to wetter regions through electricity trade. Firstly, we construct an electricity generation-consumption (EGC) model to model inter-provincial electricity trade in China and propose a hybrid virtual water intensity (HVWI) indicator to represent the provincial overall virtual water consumption factor. Then, we combine the inter-provincial electricity trade and the provincial HVWI to build China's virtual water trade network. The results show that total inter-provincial virtual water embodied in the electricity trade is 5637 GL. The top three largest electricity trade flows are Yunnan-to-Guangdong (111 billion kWh), Inner Mongolia-to-Beijing (32.7 billion kWh) and Inner Mongolia-to-Liaoning (31.1 billion kWh), and the top three largest virtual water flows are Yunnan-to-Guangdong (1527 GL), Sichuan-to-Chongqing (432.6 GL) and Sichuan-to-Shanghai (418.7 GL).

The role of intermediate trade in the change of carbon flows within China

In recent years, evaluating the emissions embodied in trade (EEIT) has become an important area of policy and research. Multiregional input-output (MRIO) analysis, which links producers and final consumers, is a widely-used method for quantifying the EEIT. However, the role of intermediate trade in driving changes in the EEIT is still not fully incorporated in MRIO analysis and as a result poorly understood. Here, we present a framework that separately identifies the drivers of the emissions embodied in the trade of final and intermediate products. We implement this framework in a case study in which we analyse the changes in CO2 emissions embodied in interprovincial trade in China from 2007 to 2012. We find that the largest changes are a rising final demand, which is associated with increased emissions that are to some extent offset by decreasing emissions intensity and changing interregional dependency. The rising imports and the growth in final demand in less developed regions in the north and central (e.g., Hebei and Henan) led to reductions in the CO2 emissions outsourced by central coastal regions. The framework enriches our understanding of the role played by intermediate trade in the relocation of emissions.

Blue, green and grey water embodied in food supply chain in China

Food trade is transferring the water embodied in food production, which plays important role in balancing water resources between dry and wet regions. To identify the impact of food trade on reallocating water and pathways to mitigate the trade–offs between food security and water resource conservation, we built food–based virtual blue, green and grey water network. The gravity model and linear programming optimization were used to model interprovincial food trade of China in 2015, and the regional blue, green and grey water footprint of food crops were inventoried. Combing the food trade network and water footprint, the food–based virtual blue, green and grey water network was built and used to quantify the water relationship along with national food supply chain. Our results showed that the proportion of green and grey water for the total water consumption were huge, while whose impacts were traditionally neglected. Especially, the food trade is playing important role in transferring the water used for assimilating the pollution. By identifying the critical food trade pathways, we aim to provide insights for reducing the structural tensions between spatial water reallocation and national food security.

The impacts of interprovincial agricultural trade on water resources in China: from perspective of grey water footprint

As the largest water consumption sector, agriculture sector plays a significant role in water resources reallocating via economic trade. Different from previous studies focusing on the impacts of economic trade on water quantity, this paper concentrates on the impacts on the water quality. Grey water footprint (GWF) of agricultural sector is used for investigating the impacts of trade on water resources. In this paper, the regional virtual grey water of agricultural trade network was built based on the GWF and multiregional input–output analysis. The GWF for agricultural sector in each region was inventoried. Then GWF of agriculture embodied in monetary flows among regions were calculated using multiregional input–output analysis. The main results showed that Shandong, Henan, Heilongjiang, Inner Mongolia, and Hebei were the most critical regions for water resources. Besides, Zhejiang and Guangdong have saved a large amount of water by importing water resources through agricultural trade. While, Hebei, Heilongjiang, Anhui, Henan and Xinjiang are exporting a large amount of water resources. Moreover, the regions with developed economy and higher population are more dependent on agricultural imports. By identifying the critical node and pathway in virtual grey water trade, this paper aims to provide theoretical foundations for mitigating water pressure and reducing water pollution in economic trade activities.

Factors affecting evolution of the interprovincial technology patent trade networks in China based on exponential random graph models

Five China’s interprovincial patent trade networks over the period 2012–2016 are established on the basis of patent transfer information collection, transfer entity identification, and regional mapping. Based on the analysis of patent trade trends and the characteristics of the network structure, endogenous structural effects and exogenous factors affecting the evolution of the trade networks are proposed, and exponential random graph models (ERGMs) constructed to select the most parsimonious model. Based on the variables in the most parsimonious model, temporal ERGM is used to determine the factors of trade networks evolution among provinces. The results provide six key factors affecting network evolution over the period 2012–2016, i.e., reciprocity, eastern output effect, intensity of technological R&D, proximity to economic center, and technology openness. Moreover, analysis reveals that the concentration of technology in provinces is the key factor inhibiting evolution, while differences among provinces on economic levels, technology trade experience, the technology receiving of western provinces, and the geographical proximity of provinces exhibit a weak effect on the evolution process. Finally, suggestions to promote interprovincial patent trade are proposed.

Circular economy of composting in Sri Lanka: Opportunities and challenges for reducing waste related pollution and improving soil health

Inadequate management of organic waste is a key cause of environmental pollution and nutrient loss in developing countries. Composting is a win-win option that allows for not only reducing environmental pollution derived by open dumping of waste but also recovering nutrients essential for crop production, consequently enhancing crop yields and reducing expensive chemical fertilizers usage. Considering these environmental and economic benefits, this study develops an economic optimization model to assess the impact and financial feasibility of compost production and marketing in Sri Lanka. The analysis does not treat compost production as an isolated sector, but traces the combined relationship between compost and chemical fertilizer applications for sustainable crop production. The findings indicate that establishing compost facilities to recycle organic waste in Sri Lanka will decrease total waste management and chemical fertilizer use costs by US$191 million. Facilitating inter-provincial trade in compost will further expand the composting potential in the country, reducing waste management and chemical fertilizer use costs by US$357 million. Successful implementation of wide-scale composting projects will require better accounting and planning in the waste management system, greater public awareness about waste derived environmental pollution, and better working conditions and safety in the sector. Increased use of compost in crop production in Sri Lanka depends on improved mechanisms for monitoring and certifying compost quality, more effective compost subsidy policies and increased knowledge and application of Integrated Nutrition Management measures.

Impacts of farmed fish consumption and food trade on methylmercury exposure in China

The global pollutant mercury (Hg), especially as methylmercury (MeHg), threatens human and ecosystem health. But major contributors of MeHg exposure to people in China remain highly debated. We developed the China Mercury Exposure Assessment (CMEA) model, which incorporates human exposure pathways for MeHg and total Hg (THg), the interregional, including international and interprovincial, food trading as well as human physiology to provide a comprehensive system that can evaluate the pathway of Hg forms to human consumers in China. Based on the CMEA model that employed the most comprehensive and recent data, we have found that the Probable Daily Intake (PDI) of MeHg for the Chinese population was 0.057 (range: 0.036–0.091 as 60% confidence interval) μg·kg−1·day−1, while that of THg was 0.35 (range: 0.22–0.55) μg·kg−1·day−1. MeHg exposure was dominated by fish intake, especially by farm-raised freshwater fish due to higher consumption of these fish. In 2011, fish intake contributed to 56% to the total MeHg exposure, followed by rice (26%). Consumption of farm-raised fish reduced human exposure to MeHg by 33%. On the other hand, interregional food trading increased MeHg exposure of the Chinese population, as a whole, by 7.6%. The international and interprovincial food trades contributed to 5.1% and 22% of MeHg intake, respectively. For the whole China, fish intake related exposure to MeHg was highest for the Eastern and Northeastern populations, while Tibetans were chronically exposed to the highest MeHg from other sources. Our findings highlight the importance of farmed fish and food trade for MeHg exposure.

Live Poultry Trading Drives China's H7N9 Viral Evolution and Geographical Network Propagation.

The on-going reassortment, human-adapted mutations, and spillover events of novel A(H7N9) avian influenza viruses pose a significant challenge to public health in China and globally. However, our understanding of the factors that disseminate the viruses and drive their geographic distributions is limited. We applied phylogenic analysis to examine the inter-subtype interactions between H7N9 viruses and the closest H9N2 lineages in China during 2010–2014. We reconstructed and compared the inter-provincial live poultry trading and viral propagation network via phylogeographic approach and network similarity technique. The substitution rates of the isolated viruses in live poultry markets and the characteristics of localized viral evolution were also evaluated. We discovered that viral propagation was geographically-structured and followed the live poultry trading network in China, with distinct north-to-east paths of spread and circular transmission between eastern and southern regions. The epicenter of H7N9 has moved from the Shanghai–Zhejiang region to Guangdong Province was also identified. Besides, higher substitution rate was observed among isolates sampled from live poultry markets, especially for those H7N9 viruses. Live poultry trading in China may have driven the network-structured expansion of the novel H7N9 viruses. From this perspective, long-distance geographic expansion of H7N9 were dominated by live poultry movements, while at local scales, diffusion was facilitated by live poultry markets with highly-evolved viruses.

Borders Near and Far: The Economic, Geographic and Regulatory Contexts for Trade and Border-Related Issues in Landlocked Alberta

ABSTRACTThe landlocked Canadian province of Alberta is an anomaly in the study of Canadian borders and borderlands. Major export sectors are increasingly dependent on negotiated access to US and other foreign markets, and sometimes to conditions imposed by other provinces. Major Alberta-based firms and sectors have extensive international operations dependent on efficient borders and predictable rules-based regulatory systems at and beyond borders. Regulatory regimes governing border and trans-border regions vary widely across sectors. Key factors affecting cross-border trade and travel include dispersed markets and related trade corridors, highly segmented production and distribution processes across and within sectors, highly variable commodity price cycles, risks of significant political shocks and ongoing contestation affecting interprovincial and trans-border trade, investment and travel.

Changing carbon content of Chinese coal and implications for emissions of CO2

Abstract The changing carbon content of coal consumed in China between 2002 and 2012 is quantified using information from the power sector. The carbon content decreased by 7.7% over this interval, the decrease particularly pronounced between 2007 and 2009. Inferences with respect to the changing carbon content of coal and the oxidation rate for its consumption, combined with the recent information on coal use in China, are employed to evaluate the trend in emissions of CO2. Emissions are estimated to have increased by 158% between 2002 and 2012, from 3.9 Gt y-1 to 9.2 Gt y-1. Our estimated emissions for 2005 are notably consistent with data reported by China in its “Second National Communication” to the UN (NDRC, 2012) and significantly higher than the estimation published recently in Nature. The difference is attributed, among other factors, to the assumption of a constant carbon content of coal in the latter study. The results indicate that CO2 emissions of China in 2005 reported by Second National Communication are more reliable to serve as the baseline for China's future carbon commitments (e.g. those in Paris Agreement of the UNFCCC). Discrepancies between national and provincial statistics on coal production and consumption are investigated and attributed primarily to anomalous reporting on interprovincial trade in four heavily industrialized provinces.

Re-Examining Embodied SO2 and CO2 Emissions in China

CO2 and SO2, while having different environmental impacts, are both linked to the burning of fossil fuels. Research on joint patterns of CO2 emissions and SO2 emissions may provide useful information for decision-makers to reduce these emissions effectively. This study analyzes both CO2 emissions and SO2 emissions embodied in interprovincial trade in 2007 and 2010 using multi-regional input–output analysis. Backward and forward linkage analysis shows that Production and Supply of Electric Power and Steam, Non-metal Mineral Products, and Metal Smelting and Pressing are key sectors for mitigating SO2 and CO2 emissions along the national supply chain. The total SO2 emissions and CO2 emissions of these sectors accounted for 81% and 76% of the total national SO2 emissions and CO2 emissions, respectively.

Virtual land, water, and carbon flow in the inter-province trade of staple crops in China

In the context of a growing world population and limited resources, trade plays an indispensable role in maintaining a constant food supply, and when commodities exchange occurs, it connects entire ecosystems and societies. In this study we used Chinese inter-province trade in staple crops to investigate the interaction of resource consumption and carbon emission systems. The trade in staple crops was simulated using an optimization model, we found that in the trade pattern the virtual land resources flowed from land-rich to land-poor provinces, but the situation was reversed for the redistribution of water resources. The trade pattern showed that total land resource use increased but water resource use decreased throughout compared with local production of traded commodities, based on the production efficiency of export and import provinces. The total carbon dioxide emissions from staple crops production in the inter-provincial trade was 254 × 108 kg carbon dioxide equivalents (CEs), and the average unit CE emissions was higher for export provinces than importing provinces. We combined the net staple crops trade, resource abundance, and unit CE emissions within provinces to define eight classes describing resource and environment management in specific areas, and to guide improvements in crop production and trade.

Measuring scarce water saving from interregional virtual water flows in China

Trade of commodities can lead to virtual water flows between trading partners. When commodities flow from regions of high water productivity to regions of low water productivity, the trade has the potential to generate water saving. However, this accounting of water saving does not account for the water scarcity status in different regions. It could be that the water saving generated from this trade occurs at the expense of the intensified water scarcity in the exporting region, and exerts limited effect on water stress alleviation in importing regions. In this paper, we propose an approach to measure the scarce water saving associated with virtual water trade (measuring in water withdrawal/use). The scarce water is quantified by multiplying the water use in production with the water stress index (WSI). We assessed the scarce water saving/loss through interprovincial trade within China using a multi-region input-output table from 2010. The results show that interprovincial trade resulted in 14.2 km3 of water loss without considering water stress, but only 0.4 km3 scarce water loss using the scarce water concept. Among the 435 total connections of virtual water flows, 254 connections contributed to 20.2 km3 of scarce water saving. Most of these connections are virtual water flows from provinces with lower WSI to that with higher WSI. Conversely, 175 connections contributed to 20.6 km3 of scarce water loss. The virtual water flow connections between Xinjiang and other provinces stood out as the biggest contributors, accounting for 66% of total scarce water loss. The results show the importance of assessing water savings generated from trade with consideration of both water scarcity status and water productivity across regions. Identifying key connections of scarce water saving is useful in guiding interregional economic restructuring towards water stress alleviation, a major goal of China’s sustainable development strategy.

Provincial Carbon Emissions Reduction Allocation Plan in China Based on Consumption Perspective

China is a country with substantial differences in economic development, energy consumption mix, resources, and technologies, as well as the development path at the provincial level. Therefore, China’s provinces have different potential and degrees of difficulty to carry out carbon emission reduction (CER) requirements. In addition, interprovincial trade, with a large amount of embodied carbon emissions, has become the fastest growing driver of China’s total carbon emissions. A reasonable CER allocation plan is, therefore, crucial for realizing the commitment that China announced in the Paris Agreement. How to determine a fair way to allocate provincial CER duties has become a significant challenge for both policy-makers and researchers. In this paper, ecological network analysis (ENA), combined with a multi-regional input-output model (MRIO), is adopted to build an ecological network of embodied emissions across 30 provinces. Then, by using flow analysis and utility analysis based on the ENA model, the specific relationships among different provinces were determined, and the amount of responsibility that a certain province should take quantified, with respect to the embodied carbon emission (ECE) flows from interprovincial trade. As a result, we suggest a new CER allocation plan, based on the detailed data of interprovincial relationships and ECE flows.

Are Canadian Provincial Tax Systems Becoming More Regressive? If So, in What Respects and Why?

There is an extensive literature on the evolution of tax progressivity and the forces shaping it in Organisation for Economic Co-operation and Development nations, but not in Canada. This article addresses these topics for the provinces since 1980. Provincial taxes have become more regressive, but unevenly across tax types and over time. Moreover, among the many commonly cited influences on tax incidence, only interprovincial trade has a strong and broad negative association with tax progressivity. Domestic trade's impact also varies considerably over time and often is the inverse of that discussed in the literature, with receding trade levels associated with rising progressivity. Many domestic influences on incidence are stronger than most transboundary ones.

Trade-Induced Atmospheric Mercury Deposition over China and Implications for Demand-Side Controls.

Mercury (Hg) is of global concern because of its adverse effects on humans and the environment. In addition to long-range atmospheric transport, Hg emissions can be geographically relocated through economic trade. Here, we investigate the effect of China's interregional trade on atmospheric Hg deposition over China, using an atmospheric transport model and multiregional input-output analysis. In general, total atmospheric Hg deposition over China is 408.8 Mg yr-1, and 32% of this is embodied in China's interregional trade, with the hotspots occurring over Gansu, Henan, Hebei, and Yunnan provinces. Interprovincial trade considerably redistributes atmospheric Hg deposition over China, with a range in deposition flux from -104% to +28%. Developed regions, such as the Yangtze River Delta (Shanghai, Jiangsu, and Zhejiang) and Guangdong, avoid Hg deposition over their geographical boundaries, instead causing additional Hg deposition over developing provinces. Bilateral interaction among provinces is strong over some regions, suggesting a need for joint mitigation, such as the Jing-Jin-Ji region (Beijing, Tianjin, and Hebei) and the Yangtze River Delta. Transferring advanced technology from developed regions to their developing trade partners would be an effective measure to mitigate China's Hg pollution. Our findings are relevant to interprovincial efforts to reduce trans-boundary Hg pollution in China.

Polarization of CO2 emissions in China's electricity sector: Production versus consumption perspectives

Abstract The inter-provincial inequality of per capita CO2 emissions in China's electricity sector means that their responsibilities for CO2 emission reduction are different. Considering the spatial separation of CO2 emissions in power production and consumption, with respect to the large scale inter-provincial electricity trade in China, this paper innovatively investigates the sub-national inequality and polarization degree of per capita CO2 emissions in China's electric power sector from the perspectives of both production and consumption. The overall tendencies of the sub-national polarization degrees of per capita CO2 emissions embodied in the both electric power consumption and production in China show an increasing trend. The results indicate that the polarization distribution of per capita CO2 emissions is still one of the important factors leading to difficulties in achieving the new reduction arrangements. The evolution of the bi-polarization analysis shows that the grouping results of per capita CO2 emissions are different from production and consumption perspectives, as well as the high- and low-emission groups have significantly different characteristics. The inequality and polarization degree of per capita CO2 emissions in China's electric power sector have changed as the CO2 emissions embodied in the electricity trade had been taken into account. One-Size-Fits-All Strategies are unlikely to be successful in advancing the provincial cooperation on CO2 emissions reduction.

The Propagation of Regional Shocks in Housing Markets: Evidence from Oil Price Shocks in Canada

Shocks to the demand for housing that originate in one region may seem important only for that regional housing market. We provide evidence that such shocks can also affect housing markets in other regions. Our analysis focuses on the response of Canadian housing markets to oil price shocks. Oil price shocks constitute an important source of exogenous regional variation in income in Canada because oil production is highly geographically concentrated. We document that, at the national level, real oil price shocks account for 11% of the variability in real house price growth over time. At the regional level, we find that unexpected increases in the real price of oil raise housing demand and real house prices not only in oil-producing regions, but also in other regions. We develop a theoretical model of the propagation of real oil price shocks across regions that helps understand this finding. The model differentiates between oil-producing and non-oil-producing regions and incorporates multiple sectors, trade between provinces, government redistribution, and consumer spending on fuel. We empirically confirm the model prediction that oil price shocks are propagated to housing markets in non-oil-producing regions by the government redistribution of oil revenue and by increased interprovincial trade.

Multiregional Input-Output Analysis of Spatial-Temporal Evolution Driving Force for Carbon Emissions Embodied in Interprovincial Trade and Optimization Policies: Case Study of Northeast Industrial District in China.

In the counties with rapid economy and carbon emissions (CEs) growth, CEs embodied in interprovincial trade (CEs-PT) significantly impacts the CEs amount and structure and represents a key issue to consider in CEs reduction policies formulation. This study applied EEBT and two-stage SDA model to analyze the characteristics and driving force of spatial-temporal evolution for net CEs-PT outflow in the Northeast Industrial District of China (NID). We found that, during 1997-2007, the net CEs-PT flowed out from NID to 16 south and east provinces, then to 23 provinces all over China, and its amount has increased 216.798Mt (by 211.67% per year). The main driving forces are technology and demand (further decomposed into structure and scale matrix); the contribution are 71.6418 Mt and 145.1562 Mt. Then, we constructed coupling relationship model and took the top three industries with the greatest net CEs-PT outflow (farming, forestry, animal husbandry and fisheries, electricity and heat production and supply, petroleum processing, coking, and nuclear fuel processing) as examples, adjusted the interprovincial trade constructions, scales, and objects, to reduce the CEs-PT with lower costs, greater effect, and more equitability. The achievement could provide reference for formulating CEs reduction policies for similar areas in the world characterized by rapid growth of economy and CEs.