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The impact of China's trade liberalisation on the greenhouse gas emissions of WTO countries
journal contribution
posted on 2023-05-20, 00:47 authored by Clinton LevittClinton Levitt, Saaby, M, Sorensen, AWe examine the effects of China's trade liberalisation, post entry into the WTO, on the greenhouse-gas (GHG) emissions of its trading partners. Using complementary estimators we establish that China's liberalised trade had significant effects on the GHG emissions of its trading partners. Increased exposure to Chinese exports increased the growth of consumption-based emissions while reducing production-based emission. The increase in consumption-based emissions was larger than the decrease in production emissions. Consumption emissions increased both through a scale effect (consumption increased) and a composition effect (consumption became more emissions intensive). Decomposition analysis suggests that the link between exposure to Chinese exports and the increase consumption-based emissions is the emissions embodied in imports: The emissions embodied in imports increased and imports became more emissions intensive. The increase in imported emissions was not offset by a reduction in domestic production of emissions either in final consumption goods or exports.
History
Publication title
China Economic ReviewVolume
54Pagination
113-134ISSN
1043-951XDepartment/School
TSBEPublisher
Elsevier Science IncPlace of publication
360 Park Ave South, New York, USA, Ny, 10010-1710Rights statement
Copyright 2018 Elsevier Inc.Repository Status
- Restricted