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International trade,pollution industry transfer and CO_2 emissions in Chinese industries

Li Xiaoping1,2 and Lu Xianxiang1 1 School of Economics,Zhongnan University of Economics and Law 2 Institute of Finance and Trade Economics,Chinese Academy of Social Sciences  
Will developed countries turn China into a haven for "dirty" industries through international trade by specializing in producing and exporting "clean" products and importing pollution-intensive products from China? How does international trade affect Chinese industries' CO2 emissions? This paper presents an empirical test of these hypotheses using statistical techniques such as the environmental input-output model and net exports as a proportion of consumption(NETXC) based on the trade data of 20 industries in China,and G7 and OECD developed countries.In this study,we draw three conclusions:(1) The proportion of domestically produced CO2 emissions in CO2 emissions embodied in products exported from China has been declining;(2) Industries migrated or displaced from developed countries into China include both "dirty" and "clean" industries;(3) International trade can help industries reduce CO2 emissions in aggregate and per unit of output.China has not become a haven for developed countries' "dirty" industries as a result of international trade.
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