Economic Development: Environmental Friendly Materials or High-Carbon Materials Produced by who?

The comparative advantage of low-carbon and high-carbon materials is determined by one country’ history and natural conditions, which is also the starting point of studying on policy trends for a country to develop low carbon economy. In this paper the method system of international economics is applied, two dimensional coordinate system is set up with environmental friendly materials and high-carbon materials. In this extreme model with only two countries , only to produce and make use of two materials above; we analyzed the cross-border exchange mechanism determined by the relative price level arising from comparative advantage , and then indicated political factors will be an important influence factor in the division of labor between developed and developing countries about carbon reduction.