An analysis of the driving forces of CO2 emissions embodied in Japan–China trade

By using the latest China–Japan input–output data sets and the index decomposition analysis (IDA) approach, this article analyzes the driving forces of CO2 emissions embodied in trade between the two countries during 1990–2000. We found that the growth of trade volume had a large influence on the increase of CO2 emissions embodiments in bilateral trade. The dramatic decline in carbon intensity of the Chinese economy is a primary cause in offsetting CO2 emissions exported from China to Japan over 1995–2000. We argue that a better understanding of the factors affecting CO2 emissions embodied in international trade will assist in seeking more effective climate policies with wider participation in the post-Kyoto regime.