Input-output analysis of carbon emissions embodied in China-Japan trade

Energy-related CO₂ emissions embodied in international trade have been widely studied by researchers all over the world. By using the bilateral trade input–output (BTIO) approach, this study investigates the CO₂ emissions embodied in China–Japan trade during 1995–2009 and attempts to identify the driving forces for the change in CO₂ emissions embodied in China’s exports to Japan during that period by using structural decomposition analysis (SDA). Result shows that CO₂ emissions embodied in China’s exports increased by about 100% from 1995 to 2009, whereas those embodied in China’s imports increased by about 500% during the same period. Result of this research also reveals that the scale effect had a large influence on the increase in CO₂ emissions embodied in China–Japan trade. The technical effect greatly decreased CO₂ emissions embodied in China’s exports to Japan, but obviously increased those embodied in imports. The influence of the structural effect was relatively small and insignificant in the change of CO₂ emissions embodied in China’s exports to Japan, but was notable in the change of emissions embodied in imports.