Title: The responsibility of CO₂ embodied in Italy–China trade: a consumption-based approach

Authors: Valeria Andreoni, Marco Duriavig

Addresses: Department of Economics, University of Bologna, Piazza Scaravilli, Bologna 1 – 40125, Italy. ' Department of Economy, Society and Territory, University of Udine, Via delle Scienze, Udine 208 – 33100, Italy

Abstract: This paper presents a theoretical model to allocate emission responsibility between producers or consumers and estimates: (1) the carbon dioxide (CO₂) emissions embodied in the bi-lateral trade of manufactured products between Italy and China from 1997 to 2003 and (2) the CO₂ emissions avoided in Italy and China by importing products of bi-lateral trade. Adopting a consumption-based approach and applying the accounting method proposed by Shui and Harriss (2006), this paper reveals that Italy is responsible for 54 MMT of CO₂ emitted in China and highlights that international trade contributes both to the increased CO₂ emissions and to the displacement of CO₂ production in developing countries. Since in the context of globalisation the commodities are not necessarily produced and consumed by the country itself, the CO₂ emissions embodied in trade have to be considered so as to improve the carbon accounting methods as for the Kyoto Protocol.

Keywords: carbon dioxide emissions; CO2 emissions; carbon emissions; international trade; production responsibility; consumption responsibility; emissions displacement; manufactured products; accounting methods; Kyoto Protocol; Italy; China; bi-lateral trade.

DOI: 10.1504/IJSE.2011.037719

International Journal of Sustainable Economy, 2011 Vol.3 No.1, pp.44 - 62

Published online: 26 Dec 2010 *

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