Firm ownership, China's export related emissions, and the responsibility issue

Jiang, Xuemei, Guan, Dabo, Zhang, Jin, Zhu, Kunfu and Green, Christopher (2015) Firm ownership, China's export related emissions, and the responsibility issue. Energy Economics, 51. pp. 466-474. ISSN 0140-9883

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Abstract

China's CO<inf>2</inf> emissions and those embodied in its exports have been extensively studied. One often neglected aspect is the prevalence of foreign-invested enterprises (FIEs) in China's exports, for which a substantial portion of benefits return to the investing countries. In this paper, we revisit China's export-related CO<inf>2</inf> emission responsibilities by viewing them from a "new", gross national income perspective. Using a recently developed environmental input-output framework, one which distinguishes firms by ownership and trade mode, we find that China's CO<inf>2</inf> emissions responsibility for each Yuan of national income from FIE exports, is actually higher than that attributable to Chinese owned enterprise (COE) exports. The result has a somewhat surprising implication: it suggests another source of conflict between China's and global interest in reducing CO<inf>2</inf> emissions. From a purely Chinese (as opposed to global) standpoint, a higher share of exports by COEs rather than FIEs is favorable, even though COEs emit more CO<inf>2</inf> when producing each unit of exports. This finding should sound an additional warning to those who still think that global climate change mitigation can be effectively pursued by allocating country-by-country emissions responsibility.

Item Type: Article
Uncontrolled Keywords: china,inf> emissions responsibility,foreign-invested enterprises,input-output table,processing exports
Faculty \ School: Faculty of Social Sciences > School of International Development
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Faculty of Social Sciences > School of Economics
Faculty of Social Sciences > Norwich Business School
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Depositing User: Pure Connector
Date Deposited: 09 Dec 2015 17:00
Last Modified: 13 Mar 2019 10:40
URI: https://ueaeprints.uea.ac.uk/id/eprint/55747
DOI: 10.1016/j.eneco.2015.08.014

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