The Imbalance of Embodied CO2 in China's Imports, Exports and Its Causes

Constraining the embodied CO2 from international trade is a crucial part of China's efforts to achieve emission peak and carbon neutrality. By referring to the WIOD, this article applies the Global Multi-Regional Input-Output (GMRIO) Model and the Value-added Trade Accounting Method to calculate the amount of embodied CO2 in China's international trade from 2000 to 2014. Results indicate that China's embodied CO2 in imports and exports is imbalanced in three dimensions: product, region, and industry. One direct cause of this phenomenon is China's higher carbon emission factors compared to its trading partner. However, the real cause is the global relocation of energy-intensive industries, which leads China to undertake the production of high-carbon industries. To achieve the 3060 Dual Carbon Goal and high-quality economic development, China needs comprehensive and systematic reforms in its economic structure.