Measuring interregional spillover and feedback effects of economy and CO2 emissions: A case study of the capital city agglomeration in China

Interregional trade not only contributes to economic output but also causes a large amount of CO2 emissions. We measure the spillover and feedback effects of economy and CO2 emissions in the capital city agglomeration of China by a four-region input-output model. The results reveal that the contribution of spillover effects on both economic output and CO2 emissions is remarkable. First, both of net economic and CO2 emissions spillovers flow from Beijing to Hebei and Tianjin. Second, net economic spillovers flow from Hebei to Tianjin, however net CO2 emissions spillovers flow from Tianjin to Hebei. Thirdly, there are some sectors, such as mining and washing of coal sector, whose economic and CO2 emissions net spillovers flow in opposite directions between any two cities. The results indicate that the economic driving function from Tianjin to Hebei needs to be strengthened, and Tianjin should assume part of the CO2 emissions responsibility for Hebei. The most important is that cities should work together to replace coal with clean energy technologies such as those based on wind and solar.