Characters, comparisons and explications of China's domestic environmental cost of agricultural exports from the perspective of global value chain

Abstract

In the context of global value chain, this paper uses world input-output table (2016) and CO₂ emission data to analyze domestic environmental cost of agricultural exports based on backward linkage MRIO model. The results show that average domestic value-added and domestic embodied emissions of China's agricultural export are respectively ranked 7th and 4th in the world during the sample period, which indicates that China's agriculture does not perform well in environmental cost; On the bright side, China's domestic environmental cost displays a downward trend over time. In terms of contributing factors, CO₂ emission coefficient is conducive to the reduction of domestic environmental cost, meanwhile the value-added coefficient, intermediate input structure, and agricultural export structure promote the increase of domestic environmental cost. Further, the cross-country decomposition results found that the emission coefficient and the intermediate input structure are the main reasons that lead China's domestic environmental cost to be higher than those of the main agricultural export countries. The value-added factor and the export structure have narrowed the gap of domestic environmental cost between China and other major agricultural economies. The research findings are still robust when scenario analysis is introduced. This study suggests that optimizing the structure of energy consumption and promoting cleaner production are most important ways to promote the sustainable development of China's agricultural exports.

Keywords: Agricultural exports; CO2 emissions; Domestic environmental cost; Multi-regional input-output model; Structural decomposition analysis.