Production-based and Consumption-based CO2 Transfers among Major Economies: A Flow Chart Analysis

Abstract

In this paper, an environmentally extended multi-regional input-output model is applied to calculate the exported production CO2 emissions and the imported consumption CO2 emissions of 14 major economies in 2009. In particular, a carbon flow chart is drawn to depict the embodied CO2 emissions transfer between each economies. The main findings are obtained as follows: (1) More than one fifth of China's production-based CO2 exports were driven by the final demand of the US; in return, there were 8.30% of the production-based CO2 exports of the US flowed into China. (2) The CO2 trade flows between the US and Canada were very strong, with 12.53% of the CO2 exports of the US flowing to Canada and 52.92% of Canada's CO2 exports flowing to the US. (3) The consumption-based CO2 imports of the US, Japan and Australia were similar, with the contribution from China being over one third. (4) The source structure of China's CO2 imports was relatively average, with the CO2 flows from Japan, South Korea, Russia, Chinese Taiwan and the US all accounting for a share of less than 10%. The findings would be of great significance to undertake targeted climate policies.