Empirical Study On Estimate Of Embodied Carbon In Chinese Manufacturing Trade And Analysis Of The Factors

Compared with Single-region Input-Output Model, the paper calculate embodied carbon dioxide emission in 16 manufacturing trade based on Multi-region Input-Output Model from 1996 to 2004, then calculate The Balance of Embodied Emission in Trade (BEET) and The Pollution Terms of Trade (PTT). In general, we find that, the value of BEET is more than 0 and PTT is more than 1, and there are still some uprising trend on the value of BEET and PTT, which mean that the embodied emission of export is larger than that of import and the ratio of export pollution intensity is larger than import pollution intensity. Chinese manufacturing trade exports are, on average, dirtier than its imports. The result of regression show that the coefficients of BEET and PTT with international competitiveness are significantly positive. In conclusion, China environmental terms of trade are "deteriorated", "Pollution Haven Hypothesis" exists. Furthermore, increasing efficiency can reduce BEET, and investing research can improve PTT. In order to conserve resources and improve the environment, Chinese company should improve energy efficiency and use modern production processes.