Impact of International Trade on the Carbon Intensity of Human Well-Being

Abstract

There has been a longstanding debate about the impact of international trade on the environment and human well-being, yet there is little known about such environment and human well-being trade-off. Here, we explore the effect of international trade on the carbon intensity of human well-being (CIWB) globally under the current global trade system and a hypothetical no-trade scenario. We found that between 1995 and 2015, CIWB of 41% of countries declined and 59% of countries increased, caused by international trade, and this resulted in a reduction of the global CIWB and a decline in CIWB inequality between countries. International trade decreased CIWB for high- and upper-middle-income countries and increased CIWB for lower- and middle-income countries. In addition, our results also show that decreases in emission intensity are the most important driver of lower CIWB and the percentage contribution of emission intensity to the improvement in CIWB increases with income. The reduction of emission intensity, population growth, and increase in life expectancy all contribute to CIWB reduction, while the consumption level is the primary factor driving CIWB growth. Our results underscore the importance of studying the impact of international trade on the CIWB of countries at different stages of development.