Implicit Environmental Injustice in Global Trade: Based on the MRIO Model

Area of Science:

• Environmental Science
• Economics
• Industrial Ecology

Background:

• Environmental injustice and its economic impacts are critical global issues.
• Embodied carbon accounting is essential for understanding industrial carbon footprints.
• Input-output analysis provides a robust framework for tracking resource flows and environmental burdens.

Purpose of the Study:

• To investigate environmental injustice within the global economy using a multiregional input-output (MRIO) model.
• To analyze embodied carbon emissions in international trade, focusing on bilateral relationships.
• To identify key drivers of carbon emissions in trade, particularly export-driven growth.

Main Methods:

• Utilized the multiregional input-output (MRIO) table method for comprehensive carbon accounting.
• Employed bilateral and multilateral input-output table approaches for accurate trade analysis.
• Examined carbon content data from 2010 to 2018 to track emission trends.

Main Results:

• Embodied carbon in the carbon industry showed fluctuations, with a notable increase from 2012-2018 (18% average annual growth).
• Significant carbon emissions were observed in bilateral trade between China, the US, and Japan.
• Export industry expansion was identified as the primary driver of increased carbon emissions in bilateral trade.

Conclusions:

• Multiregional input-output models are crucial for reliable embodied carbon calculations in international trade.
• Bilateral trade significantly contributes to global carbon emissions, necessitating targeted environmental policies.
• Technological advancements can partially mitigate the carbon intensity of export-oriented industries.