Carbon inequality in global trade: Evidence from the mismatch between embodied carbon emissions and value added

Global trade not only brings about the exchange of goods and services, but also stimulates the transfer of carbon emissions. Given different economic development stages and industrial structures, global carbon inequality occurs due to the mismatch between trade-related carbon emissions and value added. Combining the multi-regional input-output model and regional environmental index (REI), this paper constructs an integrated research framework to trace the embodied carbon emissions and value-added among six regions from 2010 to 2015 to shed light on global carbon inequality from a multi-regional perspective. The results indicate that major carbon exporters are placed in inferior positions in global trade, rendering them victims of carbon inequality. The EU, Japan and the USA have been favored by global trade from both economic and environmental perspectives, and the advantaged position of the EU has improved whereas the positions of Japan and the USA have slightly decreased. For disadvantage regions, China and ASEAN10 has improved their situations, yet the inequality suffered by the RoW148 has deteriorated. Adjusting the export structure from primary to advanced products is an effective measure to mitigate global carbon inequality. Our major implications help strike thinking on the rationality of global trade and offer integral solutions towards sustainable development.

Automated summary

Global trade results in the transfer of carbon emissions, causing global carbon inequality. Carbon-exporting countries are at a disadvantage in trade, while the EU, Japan, and the USA benefit economically and environmentally. China and ASEAN10 have improved their situations, but the inequality in the RoW148 region has worsened. Adjusting export structures can mitigate global carbon inequality.