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The impact of China's trade liberalisation on the greenhouse gas emissions of WTO countries


Levitt, C and Saaby, M and Sorensen, A, The impact of China's trade liberalisation on the greenhouse gas emissions of WTO countries, China Economic Review, 54 pp. 113-134. ISSN 1043-951X (2019) [Refereed Article]

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Copyright 2018 Elsevier Inc.

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DOI: doi:10.1016/j.chieco.2018.10.012


We 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.

Item Details

Item Type:Refereed Article
Keywords:greenhouse gas emissions, international trade, consumption emissions, production emissions
Research Division:Economics
Research Group:Applied economics
Research Field:Environment and resource economics
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Microeconomics not elsewhere classified
UTAS Author:Levitt, C (Dr Clinton Levitt)
ID Code:130780
Year Published:2019
Web of Science® Times Cited:8
Deposited By:Economics and Finance
Deposited On:2019-02-12
Last Modified:2022-08-22

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