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Article

Embodied CO2 Emission Changes in Manufacturing Trade: Structural Decomposition Analysis of China, Japan, and Korea

1
Department of Earth Resources and Environmental Engineering, Hanyang University, Wangsimni-ro 222, Seoul 04763, Korea
2
Department of Economics, Ewha Womans University, Ewhayeodae-gil 52, Seoul 03760, Korea
*
Author to whom correspondence should be addressed.
Atmosphere 2020, 11(6), 597; https://doi.org/10.3390/atmos11060597
Received: 25 April 2020 / Revised: 1 June 2020 / Accepted: 2 June 2020 / Published: 4 June 2020
(This article belongs to the Special Issue Greenhouse Gas Emission Mitigation: Feasibility and Economics)
This study investigated the driving factors of embodied carbon emission changes in manufacturing trades through structural decomposition analysis. For empirical analysis, we developed an environmental multiregional input–output model for Korea, Japan, and China for 1995–2009. The three countries, which are economically and environmentally significant in Asia, are not only tightly linked economically through global value chains, but also close geographically, sharing various environmental issues. The results show that China is a net exporter of embodied carbon emissions to Japan and Korea, despite a substantial trade deficit. Its exports are more carbon-intensive than its imports from Japan and Korea. China’s embodied emissions were mainly affected by a change in carbon-intensive production and trade structure, and Japan’s and Korea’s were affected by China’s final demand. At the sectoral level, “Electrical and Optical Equipment”, “Basic Metals and Fabricated Metal”, and “Textiles and Textile Products” mainly affected the embodied carbon emission changes in these three countries. As a result, a considerable share of carbon-intensive production has shifted to China and increased consumption of China’s final products and services in the manufacturing industries, resulting in a significant increase in embodied carbon emissions. Additionally, our findings at the sectoral level could provide important evidence regarding the effective environmental policies that enable sustainable industries. With the increasing interest in the embodied carbon emissions, future research would pay more attention to the bilateral trades of major carbon-emitting countries and multilateral trades. View Full-Text
Keywords: embodied carbon emissions; manufacturing; structural decomposition analysis; bilateral trade; environmental multiregional input–output; carbon policies; emission reduction embodied carbon emissions; manufacturing; structural decomposition analysis; bilateral trade; environmental multiregional input–output; carbon policies; emission reduction
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MDPI and ACS Style

Yoon, Y.; Kim, Y.-K.; Kim, J. Embodied CO2 Emission Changes in Manufacturing Trade: Structural Decomposition Analysis of China, Japan, and Korea. Atmosphere 2020, 11, 597. https://doi.org/10.3390/atmos11060597

AMA Style

Yoon Y, Kim Y-K, Kim J. Embodied CO2 Emission Changes in Manufacturing Trade: Structural Decomposition Analysis of China, Japan, and Korea. Atmosphere. 2020; 11(6):597. https://doi.org/10.3390/atmos11060597

Chicago/Turabian Style

Yoon, Young; Kim, Yoon-Kyung; Kim, Jinsoo. 2020. "Embodied CO2 Emission Changes in Manufacturing Trade: Structural Decomposition Analysis of China, Japan, and Korea" Atmosphere 11, no. 6: 597. https://doi.org/10.3390/atmos11060597

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