Accounting and Responsibility Allocation on Carbon Emissions Embodied in International Trade*

Wang Wenju 1 and Xiang Qifeng 1, 2
1Economics School, Capital University of Economics and Business, Beijing, China
2Statistics and Mathematics School, Yunnan University of Finance and Economics, Kunming, China

 
Abstract: This paper calculated the scale of carbon emissions embodied in the import and export of the world’s major countries based on input-output principles and international trade data, as well as data on various countries’ carbon emissions in 2005 from domestic consumption and emissions embodied in trade. The results illustrate that, because of international trade, consumers in developed countries should bear the responsibility for a large portion of CO2 emissions. The researchers separated the net transfer balance of embodied emissions in international trade according to four different effects: size effect, exchange rate effect, structural effect, and pure technical effect, all of which favor the sharing of responsibilities between producers and consumers.
Key words: embodied carbon emissions, international trade, net transfer, Logarithmic Mean Divisia Index (LMDI)

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