International Workshop on E3 Modelling for
Sustainable Low carbon East Asia
20th ~21st of September, 2014
Meijo University, Nagoya City, Japan

Chapter 19 – Measuring bothproduction-based andconsumption-based CO2 emissionof different countries based on
multi-regional input-output model
Jun Pang, Shih-mo Lin and Hector Pollitt
11. Background1) Value of bilateral trade between
China and Japan/USA/EU
Million US$

400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
02000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

中国出口美国China’s export to USA

中国出口欧盟China’s export to EU中国出口日本
China’s export to Japan

美国出口中国欧盟出口中国日本出口中国USA’s export to China

EU’s export to China( Source: GTAP8.0 database, 2012)

Japan’s export to China

2) Carbon emission of China/Japan/USA/EU
Mt CO2
8000
7000
6000
5000
4000
3000
2000
1000
0
2000

2001

2002

2003

2004

USA

2005

China

2006

EU

2007

2008

2009

2010

Japan

(Source: IEA, CO2 emissions from fuel combustion highlights, 2012)

3) Production-based emission andConsumption-based emission
 According to the production-based accounting
principle, the CO2 emissions from production fordomestic consumption and exports are all included.
 This accounting method leads to the increasing oftotal CO2 emissions of one country when its
exports keeps increasing, whereas other highly
import-dependent countries decrease its total CO2emissions by avoiding the domestic production.
 It is meaningful to take production-based andconsumption-based CO2 emissions into account at
the same time.

2. Methodology

1) Aggregation by regions in GTAP 8
No. Region
12Countries (or regions) contained in this region

MainlandCHN
China
The UnitedUSAStates

3

EuropeanUnion

AUT、BEL、CYP、CZE、DNK、EST、FIN、FRA、DEU、GRC、HUN、IRL、ITA、LVA、POL、LTU、LUX、MLT、NLD、PRT、SVK、ESP、SVN、SWE、GBR、BGR、ROU

4JapanJPN

The rest ofworld

HKG、TWN、XEA；
AUS、NZL、XOC；
KOR、KHM、IDN、LAO、MYS、PHL、SGP、THA、VNM、BGD、
XSE、IND、PAK、LKA、XSA、KAZ、KGZ、XSU、IRN、ARM、
AZE、GEO、TUR、XWS；
CAN、MEX、XNA、BOL、BRA、CHL、ARG、URY、COL、ECU、
PRY、PER、VEN、XSM、CRI、GTM、NIC、PAN、XCA、XCB；
CHE、NOR、ALB、BLR、HRV、RUS、UKR、XEE、XEF、XER；
EGY、MAR、TUN、XNF、NGA、SEN、XWF、XCF、XAC、ETH、
MDG、MWI、MUS、MOZ、UGA、ZMB、ZWE、XEC、BWA、ZAF、XSC

52) Aggregation by industries in GTAP 8No.

Aggregate
Industry

Industries contained in this aggregate industry

1

Agriculture

pdr、wht、gro、v_f、osd、c_b、pfd、ocr、ctl、oap、rmk、wol

2
3

Food
processing
Energyextraction

cmt、omt、vol、mil、pcr、sgr、ofd、b_t
coa、oil、gas

4

Other resources frs、fsh、omn

5Petrochemical

6
7

Metal smelting
and products
Non-metallicProduction

p_c、crpi_s、nfm、fmp
nmm2) Aggregation by industries in GTAP 8No.

Aggregate
Industry

1213Textile andclothing
Equipment
manufacturing
Other
manufacturing
Water, electricity
and gasConstruction
Transportation

14Services

8910
11

Industries contained in this aggregate industry
tex、wap、lea
mvh、ele、otn、ome
ppp、lum、omf
ely、gdt、wtr
cns
atp、wtp、otp
trd、cmn、ofi、isr、obs、ros、osg、dwe

3) Build the global multi-regional
input-output table
Intermediate inputs
A

B

Final consumption

…

E

A

B

…

E

Total CO2
Output Emiss
-ion

A

ZAA

ZAB

…

ZAE

YAA

YAB … YAE

XACA

B

ZBA

ZBB

…

ZBE

YBA

YBB … YBEXBCB

…

…

…

…

…

…

…

… …

…

…

E

ZEA

ZEBZEE

YEA

YEB

YEEXE

CE

Added values

…

…

…

…

Total input

XA

XB

…

XE

Intermediateinputs

Assumption:

Zsrij

Z

*rij

sririemsriysririey m*ri4) Calculate the production-based andconsumption-based CO2 emissions
 X A   A AA
 B   BA
X A 
 E   EA
X  AA AB
ABBAEBpr   YrA Y rB

 E Ak  Y kAA AE   X A   E
Bk BE  B A  X   Y   kA  E  EE  A  X   E
Ek Y kA
Y rEProduction-based CO2 emissions:d  Yr

ArY

BrConsumption-based CO2 emissions:C  E  I  A pˆ r
1rp

Y



Er T

1Cdr  E  I  A dˆ r

3. Results

1）Production-based CO2 emissions andconsumption-based CO2 emissions
2004
Production- Consumptionbasedbased（Mt CO2） （Mt CO2）

2007
Production-basedProductionProduction
V.S.
Consumptionbased V.S.
-basedbased（Mt CO2） consumptionconsumption（Mt CO2）
based
based

China

3704.193205.94

15.54% 4688.89

4045.40

15.91%

USA5933.18

6285.96-5.61% 5964.01

6272.62-4.92%

EU

4637.764919.42-5.73% 4719.48

4975.91-5.15%

JAPAN

1239.031348.87-8.14% 1228.99

1283.61-4.26%

There are often some differences in measuring a country’s carbon
emission through production-based method and consumption-based
method, especially for those typical export-oriented economies suchas China, Japan, EU and the United States.

2）Production-based CO2 emissions ofeach industry
Mt CO2Agriculture
Food Processing
Energy Exploitation
Other Resources
PetrochemicalMetal Smelters andproduction
Non-metallicProduction
Textiles and Apparel
Equipment
Manufacturing
Other Manufacturing
Electricity, Gas andWater
Construction

CHN
2004
2007
118.80 132.90
228.97 266.97

USA2004
2007
39.47
34.22
295.10 301.80

5.53

4.68

0.04

0.04

23.86
122.9027.98
153.434.06
266.09

38.18

54.63

16.72

EU20042007
43.72 39.04
371.76 368.16
0.54

JAPAN2004
2007
8.29
6.99
84.61 75.79

0.440.00

0.00

4.11
273.138.37
9.37
207.95 208.00

2.71
39.61

2.74
43.07

21.08

21.52

44.81

47.41

6.73

7.88

19.18

7.61

8.79

23.82

24.10

2.82

2.94

213.62259.76

91.13

87.50

161.45 154.77

18.00

15.30

656.66882.22575.46572.33570.31 596.93

175.89 178.99

95.70

126.40157.24152.03159.81 159.18

18.61

392.70512.67949.75981.46455.92 476.62

125.73 144.30

1017.31 1301.38

389.33383.99443.60 483.26

159.31 154.56

367.57370.81

16.50

Transportation

91.35

116.40524.65 550.03

108.60 102.95

Services681.90

830.28 2769.23 2772.27 1621.02 1602.17

488.14 476.98

JAPAN3）Industrial distribution of productionbased CO2 emission
2007

2004

EU2007
2004

USA2007
2004

CHN

2007
2004
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Agriculture

Food Processing

Energy Exploitation

Other Resources

Petrochemical

Metal Smelters and production

Non-metallic Production

Textiles and Apparel

Equipment Manufacturing

Other Manufacturing

Electricity, Gas and Water

Construction

Transportation

Services100% The CO2 emission of Equipment Manufacturing industry in China is higher
than that of United States and EU;
 The Equipment Manufacturing industry is a main carbon emission sourcein China; The Electricity industry is also a main carbon emission source in allcountries;4）Consumption-based CO2 emissions ofeach industry
Food Processing

2004
116.42215.202007
130.43252.82

USA
2004
2007
36.93
31.34
305.16 308.08

Energy Exploitation

5.37

4.63

0.00

0.00

3.27

3.03

0.37

0.60

Other Resources

23.55
88.54

27.84
110.084.12
294.61

4.19
298.66

10.96
227.15

11.55
229.63

3.58
43.07

3.13
44.47

28.82

38.97

27.49

25.82

48.54

51.50

9.32

9.27

8.98

9.47

12.93

13.22

23.63

24.35

3.65

3.45

80.41

99.24

172.48157.51

219.51

219.43

50.65

39.74

424.93574.08750.86744.12643.27655.07 184.63 167.75

51.55

60.64

223.15217.82

171.75174.20388.35507.13955.32991.43467.78506.89 127.45 144.97

Construction

1014.71 1297.79

389.13383.12446.74486.65 162.20 153.55

Transportation

84.40

109.78354.97341.23560.59557.05 134.20 119.54

Services674.71822.512758.78 2756.08

1658.91633.0 494.67 479.48

Mt CO2Agriculture

Petrochemical
Metal Smelters andproduction
Non-metallicProduction
Textiles and Apparel
Equipment
Manufacturing
Other Manufacturing
Electricity, Gas andWater

CHNEU
2004
54.71
382.63

JAPAN2007
2004
2007
46.80 10.05
8.03
376.77 100.99 87.72

24.04

21.92

JAPAN5）Industrial distribution of consumptionbased CO2 emission
2007

2004

EU

2007

CHNUSA

2004

2007
2004
2007

2004
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Agriculture

Food Processing

Energy Exploitation

Other Resources

Petrochemical

Metal Smelters and production

Non-metallic Production

Textiles and Apparel

Equipment Manufacturing

Other Manufacturing

Electricity, Gas and Water

Construction

Transportation

Services100%

 When calculating the consumption-based CO2 emission, the emission ofEquipment Manufacturing in China becomes less than that of the UnitedStates and EU.

6）Comparison of production-based and consumptionbased CO2 emissions of each industry in the yearof 2007
Agriculture
Food Processing

CHN
Prod.Cons.based
based
132.90130.43266.97252.82USA
Prod.- Cons.based
based
34.22
31.34
301.80 308.08

EUJAPAN
Prod.- Cons.- Prod.- Cons.based
based based based
39.04
46.80
6.99
8.03
368.16 376.77 75.79 87.72

Energy Exploitation

4.68

4.63

0.04

0.00

0.44

3.03

0.00

0.60

Other Resources

27.98
153.4327.84
110.084.11
273.134.19
298.669.37
208.0011.55
229.63

2.74
43.07

3.13
44.47

54.63

38.97

21.52

25.82

47.41

51.50

7.88

9.27

19.18

9.47

8.79

13.22

24.10

24.35

2.94

3.45

Textiles and Apparel259.76

99.24

87.50

157.51154.77219.43

15.30

39.74

Equipment
Manufacturing882.22574.08572.33744.12596.93655.07 178.99 167.75

Other Manufacturing

126.4060.64

152.03217.82

159.18174.20512.67507.13981.46991.43476.62506.89 144.30 144.97

1301.38
116.40830.281297.79 383.99 383.12 483.26 486.65 154.56 153.55
109.78 370.81 341.23 550.03 557.05 102.95 119.54
822.51 2772.27 2756.08 1602.17 1633.0 476.98 479.48

Mt CO2Petrochemical
Metal Smelters andproduction
Non-metallic
Production

Electricity, Gas andWater
Construction
Transportation
Services

16.50

21.92

CHNUSAEUJAPAN7）Comparison of production-based and consumptionbased CO2 emissions of each industry in the yearof 2007consumption

production
consumption
production
consumption
production
consumption
production
0%

10%Agriculture
Other Resources
Non-metallic Production
Other Manufacturing
Transportation

20%

30%40%

50%

Food Processing
Petrochemical
Textiles and ApparelElectricity, Gas and Water
Services

60%

70%

80%

90%

100%

Energy Exploitation
Metal Smelters and production
Equipment Manufacturing
Construction8）Comparison of the carbon emission embodied ininternational trade of China, the United States,
Europe and Japan
2004

2007

Mt CO2CO2emission
embodiedin export(A)

CO2emission
embodiedin import(B)

Net export
CO2ofemission
embodied embodied
carbonin export
(A-B)
(A)

CO2
emission
embodiedin import(B)

Net export
ofembodied
carbon
(A-B)

China

564.1965.94

498.26721.2377.74

643.49USA

270.81623.59-352.78276.97585.58-308.61

EU281.03

562.70-281.67

308.48564.91-256.43

Japan

87.94

197.78-109.8498.76

153.38-54.62

9）Comparison of between imported and exported
embodied CO2 emission in the bilateral trade of
China, the United States, Europe and2004

2007

CO2emission
embodie
d inexport(A)

CO2emission
embodiedin import(B)

Sino-USA

172.385.41

166.96Sino-EU

125.34

7.25

SinoJapan

81.71

6.67

Mt CO2Net export
CO2ofemission
embodied embodied
carbonin export
(A-B)
(A)

CO2emission
embodiedin import(B)

Net exportofembodiedcarbon(A-B)

203.217.15

196.06118.09160.269.11

151.15

75.04

69.01

8.33

60.67

 In the year of 2004 and 2007, Chinese total amount of embodied
CO2 emission that exported to the USA, EU, and Japan accounts
for more than 9% of domestic carbon emission, reaching 60% of
exported embodied CO2 emission over the same period.

4. Conclusions and discussions The results of each country’s production-based CO2emissions and consumption-based CO2 emissions byusing the global multi-regional input-output tablevaried significantly, especially for those exportoriented economies such as China, the United States,
EU, and Japan.
 The production-based CO2 emission of China is 15%
higher than the consumption-based CO2 emission in2004 and 2007, whereas the production-based CO2
emission of the United States, EU, and Japan is about
5% less than the consumption-based emission.
 The production-based CO2 emissions of diverse
industries in China are all more or less higher than theconsumption-based CO2 emission, but the situations in
the United States, EU, and Japan are contrary toChina. In the international trade, China is a typical net

exporter of embodied carbon. The amount ofexported embodied carbon has accounted more than
15% of the national production-based CO2emissions during 2004 and 2007, whereas this
proportion of imported embodied carbon is only 2%
or so, and the amount of net export of embodied
carbon shows a trend of further expansion.
 The United States, EU, and Japan are all net
importers of embodied carbon. The amount ofimported embodied carbon in these three countries
has accounted about 10% of their national
production-based CO2 emission in 2004 and 2007,which is much higher than their exported embodied
carbon.

 As the main trading partner of China, the UnitedStates, EU, and Japan are also main beneficiaries ofChinese exported embodied carbon. From the pointof view of bilateral trade, the CO2 emission
embodied in the export of China to the UnitedStates, EU, and Japan can account about 60% of thetotal exported embodied carbon of China.
 From 2004 to 2007, the scale of CO2 emission
embodied in the export from China to the USA andEU increased significantly.
 In spite of the decrease in the exported embodied
carbon from China to Japan, China is still a net
exporter of embodied carbon in the bilateral trade
between China and Japan.

Thanks!