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      Embodied energy and intensity in China’s (normal and processing) exports and their driving forces, 2005-2015

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          Abstract

          International trade has important impacts on a country’s energy consumption. This paper first uses the time-series (2005-2015) extended input-output database to study China’s embodied energy and intensity in both normal and processing exports. Structural decomposition analysis (SDA) is then applied to analyze the driving forces behind the embodiment changes. The empirical results show that China’s energy embodied in both normal and processing exports first increased in 2005-2008, dropped in 2009 due to the global financial crisis, and then rose again after 2009, and finally dropped in 2014-2015. The embodied energy in trade as a percentage of total energy consumption in China was relatively stable before and after the global financial crisis, at around 28% over the 2005-2008 period, and 22% over the 2009-2015 period. The contribution of the aggregate embodied intensity (AEI) of exports to China’s aggregate energy intensity dropped from 30% in 2005 to 21% in 2015. Among China’s trading partners, the United States, Japan and Korea together accounted for around half of China’s embodied energy and AEI in exports in 2005, but their shares dropped to only one third in 2015. Energy efficiency improvement played the key role in reducing the embodied energy and intensity in China’s exports. Similar analysis can be applied to other regions and indicators.

          Highlights

          • •

            We develop national AEI framework using extended input-output model with processing exports.

          • •

            We give the time-series (2005-2015) estimates of China’s embodied energy in normal and processing exports.

          • •

            We show the times-series (2005-2015) estimates of China’s AEI indicators for normal and processing exports.

          • •

            We investigate the driving forces to the changes of embodied energy in normal and processing exports in China.

          • •

            We analyze the driving forces to the changes of AEI values in normal and processing exports in China.

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          Environmental Repercussions and the Economic Structure: An Input-Output Approach

          Wassily Leontief (1970)
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            Growth in emission transfers via international trade from 1990 to 2008.

            Glen P Peters, Jan C Minx, Christopher L. Weber … (2011)
            Despite the emergence of regional climate policies, growth in global CO(2) emissions has remained strong. From 1990 to 2008 CO(2) emissions in developed countries (defined as countries with emission-reduction commitments in the Kyoto Protocol, Annex B) have stabilized, but emissions in developing countries (non-Annex B) have doubled. Some studies suggest that the stabilization of emissions in developed countries was partially because of growing imports from developing countries. To quantify the growth in emission transfers via international trade, we developed a trade-linked global database for CO(2) emissions covering 113 countries and 57 economic sectors from 1990 to 2008. We find that the emissions from the production of traded goods and services have increased from 4.3 Gt CO(2) in 1990 (20% of global emissions) to 7.8 Gt CO(2) in 2008 (26%). Most developed countries have increased their consumption-based emissions faster than their territorial emissions, and non-energy-intensive manufacturing had a key role in the emission transfers. The net emission transfers via international trade from developing to developed countries increased from 0.4 Gt CO(2) in 1990 to 1.6 Gt CO(2) in 2008, which exceeds the Kyoto Protocol emission reductions. Our results indicate that international trade is a significant factor in explaining the change in emissions in many countries, from both a production and consumption perspective. We suggest that countries monitor emission transfers via international trade, in addition to territorial emissions, to ensure progress toward stabilization of global greenhouse gas emissions.
            Article 0 comments Cited 366 times – based on 0 reviews     Review now
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              From production-based to consumption-based national emission inventories

              Glen P Peters (2008)
              Article 0 comments Cited 226 times – based on 0 reviews     Review now
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                Author and article information

                Contributors
                Bin Su
                Journal
                Journal ID (nlm-ta): Energy Econ
                Journal ID (iso-abbrev): Energy Econ
                Title: Energy Economics
                Publisher: Elsevier B.V.
                ISSN (Print): 0140-9883
                ISSN (Electronic): 1873-6181
                Publication date PMC-release: 29 August 2020
                Publication date (Electronic): 29 August 2020
                Electronic Location Identifier: 104911
                Affiliations
                [a ]Business School, Nanjing University of Information Science & Technology, Nanjing, China
                [b ]Energy Studies Institute, National University of Singapore, Singapore
                [c ]School of Public Affairs, Zhejiang University, China
                [d ]Department of Industrial Systems Engineering and Management, National University of Singapore, Singapore
                Author notes
                [* ]Corresponding author. subin@ 123456nus.edu.sg
                Article
                Publisher ID: S0140-9883(20)30251-6 Publisher ID: 104911
                DOI: 10.1016/j.eneco.2020.104911
                PMC ID: 7455529
                SO-VID: 0ad9bdf8-803c-482e-ad5f-820b4d95e109
                Copyright © © 2020 Elsevier B.V. All rights reserved.
                License:

                Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.

                History
                Date received : 20 October 2019
                Date revision received : 7 August 2020
                Date accepted : 14 August 2020
                Categories
                Subject: Article

                Keywords: input-output analysis,energy embodied in trade,aggregate embodied intensity,structural decomposition analysis,processing exports,china
                Data availability:
                Keywords: input-output analysis, energy embodied in trade, aggregate embodied intensity, structural decomposition analysis, processing exports, china

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