The energy and environmental costs of China’s trade growth

Zhang Youguo ( 张友国 )

Institute of Quantitative & Technical Economics, Chinese Academy of Social Sciences
Abstract:
This paper attempts to construct comparable price input-output tables for 1987-2006 and estimates the impacts of trade on China’s energy consumption and SO2 emissions based on these tables. The estimation results show that energy and sulfur embodied in exports surged during the 1987-2006 period and the impact of exports on China’s energy consumption and pollutant emissions reached a critical level. As energy and sulfur embodied in exports grew faster than pollution embodied in imports, the absolute gap between the two measurements continued to grow rapidly. Meanwhile, the terms of trade in energy and SO2 severely deteriorated.

Key words: Pollution embodied in trade; Pollution terms of trade; Input-output model; RAS; SDA

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