China＇s provincial CO2 emissions embodied in trade with implications for regional climate policy

CO2 emissions embodied in trade have an important and far-reaching impact on CO2 emissions reduction obligations. Based on a multi-regional inputoutput analysis, this paper calculates China＇s provincial CO2 emissions embodied in trade and analyzes CO2 emissions embodied in trade per unit of value of trade in 30 Chinese provinces. Several climate policy options that potentially reduce the impact of trade on individual provinces are discussed. One finding from this study is that provincial CO2 emissions embodied in trade accounted for approximately 60.02% of China＇s CO2 emissions in 2007. The CO2 emissions embodied in imports and exports for 30 Chinese provinces differ widely, and remarkable differences in the CO2 emissions embodied in trade per unit of value of trade exist. Another important finding, is that if provinces take binding commitments as a part of a coalition, instead of as individual provinces, then the impacts of trade can be reduced. Notably, however, the extent of reduction in a coalition varies in different provinces.