Unbalanced economic benefits and the electricity-related carbon emissions embodied in China's interprovincial trade

Abstract

Quantifying the economic benefits and environmental costs brought about by trade can help reveal the environmental inequalities behind regional trade. There have been many studies on the accounting of greenhouse gas emissions and pollutants embodied in regional trade, but there are insufficient studies analyzing the imbalance between the economic benefits and environmental costs embodied in trade. Electricity-related carbon emissions are the main contributor to global warming, explaining more than 40% of carbon emissions both globally and in China. This study uses the network approach and multiregional input-output (MRIO) model to quantify the electricity-related carbon emissions and value added embodied in China's interprovincial trade from 2007 to 2012 and also applies the regional environmental inequality (REI) index to measure the imbalance of electricity-related carbon emissions and economic benefits embodied in such trade. The results show that 20-80% of the electricity-related carbon emissions and 15-70% of the value added of a province's final demand are outsourced to other provinces. The major directions of the net value added and electricity-related carbon emissions embodied in China's interprovincial trade were from north to south and from the center to the east. Unequal bilateral interprovincial trade mainly occurred between inland provinces and developed provinces, and western provinces (such as Guizhou, Gansu, and Ningxia) suffered economic and environmental losses from interprovincial trade. This study can promote understanding of the distribution impacts of domestic trade on environmental costs and economic benefits and provide a reference for China's cross-provincial carbon emission mitigation policies.

Keywords: Carbon emissions; Electricity; Interprovincial trade; Multiregional input-output model.