Consumption-Based Accounting and the Trade-Carbon Emissions Nexus in Asia: A Heterogeneous, Common Factor Panel Analysis

By Brantley Liddle. Sustainability, 2018

352 citations recorded by the source corpus.

This paper considers a recently developed consumption-based carbon emissions database from which emissions calculations are made based on the domestic use of fossil fuels plus the embodied emissions from imports minus exports, to test directly for the importance of trade in national emissions. The People’s Republic of China (PRC) alone is responsible for over half the global outflows of carbon via trade. The econometric estimations—which focused on a panel of 20 Asian countries—determined that: (i) trade flows were significant for consumption-based emissions but not for territory-based emissions; and (ii) exports and imports offset each other in that exports lower consumption-based emissions, whereas imports increase them. Hence, all countries should have both an interest and a responsibility to help lower the carbon intensity of energy in countries that are particularly important for global carbon transfers—the PRC and India.

Subfields: Economics and Econometrics, Environmental Engineering

View Paper: https://www.semanticscholar.org/paper/f5d2a823dd9ea1224b25a034dc1d7761680a2293

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Citations in the corpus

Consumption-based versus production-based accounting of CO2 emissions: Is there evidence for carbon leakage? (2018, result): “Similar results are reported by Liddle (2018) who finds an elasticity of 0.57 using production-based CO2 emissions, and an elasticity of 0.66 analyzing consumption-based data.”
Preventing carbon emission retaliatory rebound post-COVID-19 requires expanding free trade and improving energy efficiency (2020, neutral): “Using a panel of 102 countries, Liddle (2018) analyzed the impact of import volume and export volume on carbon emissions in 1990–2013.”
The renewable energy consumption-environmental degradation nexus in Top-10 polluted countries: Fresh insights from quantile-on-quantile regression approach (2020, background): “In doing so, the policymakers might have to bring forth a transformation in the existing energy mix, and to bring forth technological innovation, they might require technology transfer via international trade (Shahbaz et al. 2017a, b, 2019, Liddle 2018).”
Does Energy Productivity and Technological Innovation Limit Trade-Adjusted Carbon Emissions? (2020, background): “Moreover, to analyze the factors affecting PCO2 and CCO2 emissions, both imports and exports can be examined distinctly (Liddle, 2018).”