China's inter-regional spillover of carbon emissions and domestic supply chains

Abstract

In this study, we apply the inter-regional input-output model to explain the relationship between China's inter-regional spillover of CO<inf>2</inf> emissions and domestic supply chains for 2002 and 2007. Based on this model, we propose alternative indicators such as the trade in CO<inf>2</inf> emissions, CO<inf>2</inf> emissions in trade and the regional trade balances of CO<inf>2</inf> emissions. Our results do not only reveal the nature and significance of inter-regional environmental spillover within China's domestic regions but also demonstrate how CO<inf>2</inf> emissions are created and distributed across regions via domestic and global production networks. Results show that a region's CO<inf>2</inf> emissions depend on its intra-regional production technology, energy use efficiency, as well as its position and participation degree in domestic and global supply chains. © 2013 Elsevier Ltd.