Tracing two decades of carbon emissions using a network approach

Area of Science:

• Environmental Science
• Economics
• Network Analysis

Background:

• Current climate change policy attributes carbon emissions to producers.
• Recent literature proposes a consumption-based accounting for embedded carbon in imported goods.
• Understanding global emission flows is crucial for effective climate policy.

Purpose of the Study:

• To analyze the structure of global emission flows using a consumption-based approach.
• To quantify the impact of trade activity on carbon emissions between countries.
• To evaluate the implications of consumption-aware accounting for climate responsibility.

Main Methods:

• Construction of a Carbon Trade Network for 100 countries over 20 years.
• Analysis of emission flows based on a balanced panel data.
• Identification of 'net producer'/'net exporter' and 'net consumer'/'net importer' countries.

Main Results:

• Countries consistently act as either net exporters or net importers of emissions.
• Increased global trade has led to a rise in emissions transferred from net exporters to net importers.
• Individual trade exchanges have become less carbon-intensive, yet overall emissions have increased.

Conclusions:

• Consumption-based accounting offers a different perspective on climate responsibility.
• Shifting to consumption-aware accounting could re-distribute emission responsibilities.
• This approach may help reduce disparities in climate change impact and accountability.