Carbon emissions embodied in value added chains in China

The literature on carbon leakage and embodied carbon in regional trade is extensive. However, many studies are primarily concerned with emissions embodied in demand-supply chains and ignore the issue of carbon transfer behind the value-added chains. We promote a model to calculate value-based emissions (VBEs) and carbon emissions embodied in the value-added chain using the multi-regional input-output model (MRIO). Taking China as an example, VBEs and carbon emissions embodied in value-added chains at the sub-national level based on MRIO tables for 1997 and 2007 in China were analyzed. Transferred carbon emissions embodied in regional value-added chains in China showed rapid growth between 1997 and 2007. However, the absolute values of inter-regional net transferred carbon emissions embodied in value added chains were small and showed a declining trend. Therefore, the regional inequality between economic growth and carbon emissions pollution reduced between 1997 and 2007, although the amount of emissions embodied in regional value-added chains increased as of the inter-regional economic link in China gained close proximity.