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

Energy-related CO 2 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 CO 2 emissions embodied in China-Japan trade during 1995-2009 and attempts to identify the driving forces for the change in CO 2 emissions embodied in China's exports to Japan during that period by using structural decomposition analysis (SDA). Result shows that CO 2 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 CO 2 emissions embodied in China-Japan trade. The technical effect greatly decreased CO 2 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 CO 2 emissions embodied in China's exports to Japan, but was notable in the change of emissions embodied in imports.