What Accounts for the Growth of Carbon Dioxide Emissions in Advanced and Emerging Economies? The Role of Consumption, Technology, and Global Supply Chain Trade

Abstract

This paper examines the changes in territorial carbon dioxide emissions due to changes in energy intensity within global production networks, supply chain participation, and domestic and foreign consumption. It finds that a substantial share of emissions growth in emerging economies is explained by higher participation in global production networks that serve expanding foreign consumption. However, even for countries that most rapidly integrated in global production networks, such as the People’s Republic of China, rising domestic consumption accounts for the bulk of territorial emissions. Improved energy efficiency partially stemmed the spike in emissions from higher consumer demand.