The Impact of China's Trade Liberalisation on the Greenhouse Gas Emissions of WTO Countries

Clinton J. Levitt, Morten Saaby, Anders Sørensen

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

We examine the effects of China's trade liberalisation, post entry into the WTO, on the greenhouse-gas (GHG) emissions of its trading partners. Using complementary estimators we establish that China's liberalised trade had significant effects on the GHG emissions of its trading partners. Increased exposure to Chinese exports increased the growth of consumption-based emissions while reducing production-based emission. The increase in consumption-based emissions was larger than the decrease in production emissions. Consumption emissions increased both through a scale effect (consumption increased) and a composition effect(consumption became more emissions intensive). Decomposition analysis suggests that the link between exposure to Chinese exports and the increase consumption-based emissions is the emissions embodied in imports: The emissions embodied in imports increased and imports became more emissions intensive. The increase in imported emissions was not offset by a reduction in domestic production of emissions either in final consumption goods or exports.
We examine the effects of China's trade liberalisation, post entry into the WTO, on the greenhouse-gas (GHG) emissions of its trading partners. Using complementary estimators we establish that China's liberalised trade had significant effects on the GHG emissions of its trading partners. Increased exposure to Chinese exports increased the growth of consumption-based emissions while reducing production-based emission. The increase in consumption-based emissions was larger than the decrease in production emissions. Consumption emissions increased both through a scale effect (consumption increased) and a composition effect(consumption became more emissions intensive). Decomposition analysis suggests that the link between exposure to Chinese exports and the increase consumption-based emissions is the emissions embodied in imports: The emissions embodied in imports increased and imports became more emissions intensive. The increase in imported emissions was not offset by a reduction in domestic production of emissions either in final consumption goods or exports.
SprogEngelsk
TidsskriftChina Economic Review
Vol/bind54
Sider113-134
Antal sider60
ISSN1043-951X
DOI
StatusUdgivet - apr. 2019

Bibliografisk note

Published online: 1 December 2018

Emneord

  • Greenhouse gas emissions
  • International trade
  • Consumption emissions
  • Production emissions

Citer dette

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The Impact of China's Trade Liberalisation on the Greenhouse Gas Emissions of WTO Countries. / Levitt, Clinton J.; Saaby, Morten; Sørensen, Anders.

I: China Economic Review, Bind 54, 04.2019, s. 113-134.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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