Wednesday, December 12, 2018

The impact of international trade on China׳s industrial carbon emissions since its entry into WTO



ABSTRACT "This paper employs the input–output (IO) approach to analyze the scale and structure of embodied carbon emissions of China׳s 19 industry sectors during 2001–2011 and constructs a regression model to establish the relationship between energy intensity, per capita output, trade openness, foreign direct investment (FDI), trade comparative advantage, environmental regulation, technology, and CO2 emission intensity. Our results suggest that: China׳s international embodied carbon emission balance has been in a state of continuous growth for the period 2001–2011, and China has become a pollution haven; the relationship between per capita output and CO2emission is inverse N-typed and China׳s industries are in the rising stage of the curve; FDI and trade comparative advantage are two main elements boosting China׳s carbon emissions; trade openness, environmental regulation, and technology will lower the growth rate of China׳s industrial carbon emissions (ICEs). Consequently, China׳s policies should center on adjusting the industry structure and scale of FDI inflows, transforming industries with trade comparative advantages into a clean type, facilitating environmental regulation level, and bringing in and developing low-carbon technology to avert China from being a pollution haven."

China’s carbon emissions have progressively gotten worse over the years 2001-2011. Trade comparative advantage is one reason, according to the abstract, that China’s carbon emissions have continued to grow. China has the ability to produce goods at extremely low costs, giving themselves a comparative advantage in many industries. One of the reason these low costs are possible, though, is because China has not adapted their production to be low-pollution creating and instead much of their production in these areas have high negative externalities, mainly being pollution. According to the abstract “trade openness, environmental regulation, and technology” are keys to China lowering their carbon emissions.

I think that China really needs to move industries into cleaner production. With environmental problems being such a great threat right now, all countries should be doing their best to reduce pollution. I think that other countries that are already making the move to be more environmentally friendly, should consider some kind of back lash for those countries that are not also moving to cut down pollution. This could be through tariffs or quotas on imports to these countries which production has high pollution externalities.

1 comment:

  1. I agree with Erin the China does need to do something about producing so much pollution. They are one of the leaders of producing the most pollution and that needs to stop. They are harming their population and they have already had to take measures by having people drive their cars at certain hour during the day. There should be more done about this soon otherwise the Chinese population will have major illnesses. Also the idea about having back lash for countries that don't will push them pollute less because of the possible tariffs and quotas other countries can impose on them.

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