Inter-regional Spillover Of Carbon Emissions And Global Supply Chains

Global intensified greenhouse effect drives people to pay more attention to the main greenhouse gases-carbon dioxide emissions. The Kyoto protocol, which is the first global environmental agreement of international cooperation on environmental issues, applies principle of production responsibility to divide responsibility on international carbon emissions. However, the development of trade and vertical specialization are making international production networks increasingly complex. International trade is a way for global resource allocation, but due to the energy usages and CO2 emissions in the production process, the international trade not only causes the flow of products cross regions, but also causes the flow of carbon embodied in international trade. Based on the calculation of carbon emissions embodied in trade, Academics doubt the fairness of production responsibility principle, and discussed a lot on how to divide the carbon emissions responsibility from country to country.we apply the regional input-output model to explain the relationship between inter-regional spillover of carbon dioxide emissions and global supply chain for 2004 and 2009. In order to give an overview of the world’s seven regions’economic development, inter-regional trade, energy efficiency, we use input-output table and carbon dioxide emissions data to make a descriptive statistical analysis. Then we calculate CO2 emissions in trade (CEiT) and trade in CO2 emissions (TiCE). The empirical results not only reveal the nature and characteristics of CO2 emissions of inter-regional spillover within the seven regions, but also shows how CO2 emissions are created and distributed cross regions. Main findings indicate that a region’s CO2 emissions are not only related to its regional energy efficiency and the production technique within the region, but also related to its position and participation in the global supply chain.Finally, based on the empirical results of the analysis, we propose some advice on how to divide carbon emissions responsible and how to reduce carbon emissions across in the whole world.