Print Email Facebook Twitter The contribution of trade to production-Based carbon dioxide emissions Title The contribution of trade to production-Based carbon dioxide emissions Author Wu, Ran (Harbin Institute of Technology) Ma, Tao (Harbin Institute of Technology) Schröder, E. (TU Delft Economics of Technology and Innovation) Date 2022-03 Abstract International trade and emission offshoring can reduce a country's domestic carbon dioxide emissions, helping it to reach emission reduction targets set under the prevailing territorial climate policy frameworks. We ask what is the net contribution of trade to national production-based emissions. Existing metrics (consumption-based emissions and the technology-adjusted balance of emissions embodied in trade) do not answer this question. Based on global multi-regional input-output tables and the domestic technology assumption, we calculate net emission onshoring as the difference between the emissions embodied in gross exports (onshoring) and the emissions avoided by gross imports (offshoring) for 43 countries between 2000–2014. We find that the USA offshores emissions and China onshores emissions; the aggregate trade balance explains this result while the trade composition plays a negligible role in either country. In general there is no cross-country relationship between net offshoring and per-capita income, and neither one between trade specialization in emission-intensive products and per-capita income. The developed countries’ absolute decoupling of economic growth and production-based emissions since 2000 is “genuine” in the sense that it reflects domestic economic developments and is not owed to emission offshoring. Subject Carbon accountingCarbon dioxideCarbon footprintsCO2Decoupling,DisplacementEmissionsGlobal value chainsInput-outputInternational tradeLeakageOffshoringOutsourcingPollution haven hypothesisSpillover effects To reference this document use: http://resolver.tudelft.nl/uuid:c45420fe-dfd6-4d90-bd69-d761fb68cdc1 DOI https://doi.org/10.1016/j.strueco.2021.12.005 ISSN 0954-349X Source Structural Change and Economic Dynamics, 60, 391-406 Part of collection Institutional Repository Document type journal article Rights © 2022 Ran Wu, Tao Ma, E. Schröder Files PDF 1_s2.0_S0954349X21001776_main.pdf 1.79 MB Close viewer /islandora/object/uuid:c45420fe-dfd6-4d90-bd69-d761fb68cdc1/datastream/OBJ/view