Scale, Technique and Composition Effects in Trade-Related Carbon Emissions in China

This study applies structural decomposition analysis to evaluate the scale, composition and technique effects of trade-related carbon emissions in China (mainland) from 1987 to 2007. The initial findings indicate that the increasing magnitude of China's trade, both in terms of the carbon emissions embodied in exports and the carbon emissions avoided via imports, had large-scale effects during the whole period. The technique effect caused by changes in input mix, sector energy intensity, fuel mix and carbon coefficients effectively offset part of the scale effect during the entire period but failed to do so during some sub-periods. Changes in trade composition caused a relative small increase in the carbon emissions created by exports but a relative small decrease in the carbon emissions avoided via imports during the whole period.