CO₂ emissions embodied in international trade

This article examines international trade from the perspective of the carbon dioxide (CO₂) emissions generated by the production and distribution of traded goods and services. It takes account of both the CO₂ produced within a country's national territory via its domestic output, and those emissions embodied in its exports or imports. China, for example, is a net exporter of CO₂ emissions while the United States is a net importer. More generally, advanced economies consume more CO₂ than they emit, while the opposite is true for emerging economies or commodity producers. These divergences are mainly attributable to the sectoral composition of countries' trade flows. Other factors that influence a country's CO₂ emissions are its scale (economic or population size), the emissions efficiency of its productive apparatus, and the degree to which it is integrated into global value chains. (authors)