Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation

• Published in: Energy economics Vol. 32; no. 1; pp. 166 - 175
• Main Authors: BIN SU, HUANG, H. C, ANG, B. W, ZHOU, P
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier 2010
• Series: Energy Economics
• Subjects: Applied sciences; Atmospheric pollution; Combustion and energy production; Economic data; Emissions embodied in trade Input-output analysis Sector aggregation; Energy; Energy economics; Exact sciences and technology; General, economic and professional studies; Methodology. Modelling; Pollution; Pollution sources. Measurement results; Asia; China; Singapore; China, People's Rep; Methodology; C67; Input-output analysis; Carbon dioxide; Pollutant emission; Emissions embodied in trade; Sector aggregation; Aggregation; Case study; International trade; Q43; Input output analysis; Q56; Economic sector; Leontief model; Export
• ISSN: 0140-9883; 1873-6181
• DOI: 10.1016/j.eneco.2009.07.010

Energy-related CO2 emissions embodied in international trade have been widely studied by researchers using the input-output analysis framework. These studies are often conducted at a specific level of sector aggregation and the choice made to a large extent is dictated by economic and energy data availability. We investigate analytically the possible effects of sector aggregation on the study results. We conduct empirical studies using the data of China and Singapore where energy-related CO2 emissions embodied in their exports are estimated at different levels of sector aggregation. A finding from the studies is that levels around 40 sectors appear to be sufficient to capture the overall share of emissions embodied in a country's exports. Another finding is that in approximating the "ideal" situation the hybrid data treatment approach produces better results than the uniformly distributed data treatment approach. Other findings and some recommendations are also presented.