672
Views
1
CrossRef citations to date
0
Altmetric
Research Article

Beyond production and consumption: using throughflows to untangle the virtual trade of externalities

ORCID Icon, ORCID Icon, ORCID Icon & ORCID Icon
Pages 376-396 | Received 09 Apr 2022, Accepted 25 Jan 2023, Published online: 23 Feb 2023

References

  • Amador, J., & Cabral, S. (2017). Networks of value-added trade. The World Economy, 40(7), 1291–1313. https://doi.org/10.1111/twec.12469
  • Borin, A., & Mancini, M. (2019). Measuring what matters in global value chains and value-added trade. World Bank, Washington, DC., No. 8804. https://openknowledge.worldbank.org/handle/10986/31533.
  • Böhringer, C., Fischer, C., Rosendahl, K. E., & Rutherford, T. F. (2022). Potential impacts and challenges of border carbon adjustments. Nature Climate Change, 12(1), 22–29. https://doi.org/10.1038/s41558-021-01250-z
  • Chatzitheodorou, K., Skouloudis, A., Evangelinos, K., & Nikolaou, I. (2019). Exploring socially responsible investment perspectives: A literature mapping and an investor classification. Sustainable Production and Consumption, 19, 117–129. https://doi.org/10.1016/j.spc.2019.03.006
  • Conference of the Parties, Adoption of the Paris Agreement. (2015). United Nations.
  • Costinot, A., Vogel, J., & Wang, S. (2013). An elementary theory of global supply chains. The Review of Economic Studies, 80(1), 109–144. https://doi.org/10.1093/restud/rds023
  • Davis, S. J., Peters, G. P., & Caldeira, K. (2011). The supply chain of CO2 emissions. Proceedings of the National Academy of Sciences, 108(45), 18554–18559. https://doi.org/10.1073/pnas.1107409108
  • Dechezleprêtre, A., & Sato, M. (2017). The impacts of environmental regulations on competitiveness. Review of Environmental Economics and Policy, 11(2), 183–206. https://doi.org/10.1093/reep/rex013
  • Dietzenbacher, E., & Lahr, M. L. (2013). Expanding EXTRACTIONS. Economic Systems Research, 25(3), 341–360. https://doi.org/10.1080/09535314.2013.774266
  • Dietzenbacher, E., Linden, J. A. v. d., & Steenge, A. E. (1993). The regional extraction method: EC input–output comparisons. Economic Systems Research, 5(2), 185–206. https://doi.org/10.1080/09535319300000017
  • Dietzenbacher, E., van Burken, B., & Kondo, Y. (2019). Hypothetical extractions from a global perspective. Economic Systems Research, 31(4), 505–519. https://doi.org/10.1080/09535314.2018.1564135
  • European Commission. (2021a). “Fit for 55”: Delivering the EU’s 2030 Climate Target on the way to climate neutrality (COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS). European Commission. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52021DC0550&from=EN.
  • European Commission. (2021b). Proposal for a regulation of the European Parliament and of the council on the making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010. DG for Environment. https://environment.ec.europa.eu/system/files/2021-11/COM_2021_706_1_EN_ACT_part1_v6.pdf.
  • European Commission. (2022). Proposal for a regulation of the European parliament and of the council on prohibiting products made with forced labour on the Union market. DG Internal Market, Industry, Entrepreneurship and SMEs. https://single-market-economy.ec.europa.eu/system/files/2022-09/COM-2022-453_en.pdf.
  • Gallego, B., & Lenzen, M. (2005). A consistent input–output formulation of shared producer and consumer responsibility. Economic Systems Research, 17(4), 365–391. https://doi.org/10.1080/09535310500283492
  • Godard, O., & Gorg, H. (2011). The role of global value chains for German manufacturing. SSRN Electronic Journal, https://doi.org/10.2139/ssrn.2179948
  • Gütschow, J., Günther, A., Jeffery, M. L., & Gieseke, R. (2021). The PRIMAP-hist national historical emissions time series (1850-2018) v2.2. https://doi.org/10.5281/zenodo.4479172.
  • Gütschow, J., Jeffery, M. L., & Günther, A. (2020). PRIMAP-crf: UNFCCC CRF data in IPCC categories (PRIMAP-crf-2020-v1). https://doi.org/10.5281/zenodo.4320857.
  • Hanaka, T., Kagawa, S., Ono, H., & Kanemoto, K. (2017). Finding environmentally critical transmission sectors, transactions, and paths in global supply chain networks. Energy Economics, 68, 44–52. https://doi.org/10.1016/j.eneco.2017.09.012
  • Hanaka, T., Kanemoto, K., & Kagawa, S. (2022). Multi-perspective structural analysis of supply chain networks. Economic Systems Research, 34(2), 199–214. https://doi.org/10.1080/09535314.2021.1883552
  • Hummels, D., Ishii, J., & Yi, K.-M. (2001). The nature and growth of vertical specialization in world trade. Journal of International Economics, 54(1), 75–96. https://doi.org/10.1016/S0022-1996(00)00093-3
  • Jakob, M. (2021). Climate policy and international trade – A critical appraisal of the literature. Energy Policy, 156, 112399. https://doi.org/10.1016/j.enpol.2021.112399
  • Jakob, M., Afionis, S., Åhman, M., Antoci, A., Arens, M., Ascensão, F., van Asselt, H., Baumert, N., Borghesi, S., Brunel, C., Caron, J., Cosbey, A., Droege, S., Evans, A., Iannucci, G., Jiborn, M., Kander, A., Kulionis, V., Levinson, A., … Willner, S. (2022). How trade policy can support the climate agenda. Science, 376(6600), 1401–1403. https://doi.org/10.1126/science.abo4207
  • Jakob, M., & Marschinski, R. (2013). Interpreting trade-related CO2 emission transfers. Nature Climate Change, 3(1), 19–23. https://doi.org/10.1038/nclimate1630
  • Jakob, M., Ward, H., & Steckel, J. C. (2021). Sharing responsibility for trade-related emissions based on economic benefits. Global Environmental Change, 66, 102207. https://doi.org/10.1016/j.gloenvcha.2020.102207
  • Kagawa, S., Suh, S., Hubacek, K., Wiedmann, T., Nansai, K., & Minx, J. (2015). CO2 emission clusters within global supply chain networks: Implications for climate change mitigation. Global Environmental Change, 35, 486–496. https://doi.org/10.1016/j.gloenvcha.2015.04.003
  • Koopman, R., Powers, W., Wang, Z., & Wei, S.-J. (2010). Give credit where credit is due: Tracing value added in global production chains (No. w16426). National Bureau of Economic Research, w16426. https://doi.org/10.3386/w16426.
  • Koopman, R., Wang, Z., & Wei, S.-J. (2014). Tracing value-added and double counting in gross exports. American Economic Review, 104(2), 459–494. https://doi.org/10.1257/aer.104.2.459
  • Latapí Agudelo, M. A., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1. https://doi.org/10.1186/s40991-018-0039-y
  • Lenzen, M. (2003). Environmentally important paths, linkages and key sectors in the Australian economy. Structural Change and Economic Dynamics, 14(1), 1–34. https://doi.org/10.1016/S0954-349X(02)00025-5
  • Lenzen, M., Kanemoto, K., Moran, D., & Geschke, A. (2012). Mapping the structure of the world economy. Environmental Science & Technology, 46(15), 8374–8381. https://doi.org/10.1021/es300171x
  • Lenzen, M., Moran, D., Kanemoto, K., & Geschke, A. (2013). Building EORA: A global multi-region input–output database at high country and sector resolution. Economic Systems Research, 25(1), 20–49. https://doi.org/10.1080/09535314.2013.769938
  • Liang, S., Qu, S., & Xu, M. (2016). Betweenness-Based method to identify critical transmission sectors for supply chain environmental pressure mitigation. Environmental Science & Technology, 50(3), 1330–1337. https://doi.org/10.1021/acs.est.5b04855
  • Liang, S., Qu, S., Zhu, Z., Guan, D., & Xu, M. (2017). Income-Based greenhouse Gas emissions of nations. Environmental Science & Technology, 51(1), 346–355. https://doi.org/10.1021/acs.est.6b02510
  • Liu, L. (2015). A critical examination of the consumption-based accounting approach: Has the blaming of consumers gone too far? WIREs Climate Change, 6(1), 1–8. https://doi.org/10.1002/wcc.325
  • Los, B., & Timmer, M. (2018). Measuring bilateral exports of value added: A unified framework(No. w24896). National Bureau of Economic Research, w24896. https://doi.org/10.3386/w24896.
  • Los, B., Timmer, M. P., & de Vries, G. J. (2015). How global are global value chains? A new approach to measure international fragmentation: how global are global value chains? Journal of Regional Science, 55(1), 66–92. https://doi.org/10.1111/jors.12121
  • Maeno, K., Tokito, S., & Kagawa, S. (2022). CO2 mitigation through global supply chain restructuring. Energy Economics, 105, 105768. https://doi.org/10.1016/j.eneco.2021.105768
  • Maluck, J., & Donner, R. V. (2015). A network of networks perspective on global trade. PLOS ONE, 10(7), e0133310. https://doi.org/10.1371/journal.pone.0133310
  • Meng, B., Peters, G. P., Wang, Z., & Li, M. (2018). Tracing CO2 emissions in global value chains. Energy Economics, 73, 24–42. https://doi.org/10.1016/j.eneco.2018.05.013
  • Miller, R. E., & Blair, P. D. (2009). Input–output analysis foundations and extensions. Cambridge University Press.
  • Misch, F. (2021). Revisiting carbon leakage. International Monetary Fund. http://elibrary.imf.org/view/journals/001/2021/207/001.2021.issue-207-en.xml.
  • Naegele, H., & Zaklan, A. (2019). Does the EU ETS cause carbon leakage in European manufacturing? Journal of Environmental Economics and Management, 93, 125–147. https://doi.org/10.1016/j.jeem.2018.11.004
  • Peters, G. P. (2008). From production-based to consumption-based national emission inventories. Ecological Economics, 65(1), 13–23. https://doi.org/10.1016/j.ecolecon.2007.10.014
  • Peters, G. P., Davis, S. J., & Andrew, R. (2012). A synthesis of carbon in international trade. Biogeosciences (online), 9(8), 3247–3276. https://doi.org/10.5194/bg-9-3247-2012
  • Riahi, K., Schaeffer, R., Arango, J., Calvin, K., Guivarch, C., Hasegawa, T., Jiang, K., Kriegler, E., Matthews, R., Peters, G. P., Rao, A., Robertson, S., Sebbit, A. M., Steinberger, J., Tavoni, M., & Van Vuuren, D. P. (2022). Mitigation pathways compatible with long-term goals. In P. R. Shukla, J. Skea, R. Slade, A. A. Khourdajie, R. van Diemen, D. McCollum, M. Pathak, S. Some, P. Vyas, R. Fradera, M. Belkacemi, A. Hasija, G. Lisboa, S. Luz, & J. Malley (Eds.), IPCC, 2022: Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, 295–335. Cambridge University Press. https://doi.org/10.1017/9781009157926.005.
  • Rondoni, A., & Grasso, S. (2021). Consumers behaviour towards carbon footprint labels on food: A review of the literature and discussion of industry implications. Journal of Cleaner Production, 301(127031), 127031. https://doi.org/10.1016/j.jclepro.2021.127031
  • Sakai, M., & Barrett, J. (2016). Border carbon adjustments: Addressing emissions embodied in trade. Energy Policy, 92, 102–110. https://doi.org/10.1016/j.enpol.2016.01.038
  • Skelton, A., Guan, D., Peters, G. P., & Crawford-Brown, D. (2011). Mapping flows of embodied emissions in the global production system. Environmental Science & Technology, 45(24), 10516–10523. https://doi.org/10.1021/es202313e
  • Stiglitz, J. E., Stern, N., Duan, M., Edenhofer, O., Giraud, G., Heal, G. M., La Rovere, E. L., Morris, A., Moyer, E., Pangestu, M., Shukla, P. R., Sokona, Y., & Winkler, H. (2017). Report of the high-level commission on carbon prices. https://doi.org/10.7916/D8-W2NC-4103.
  • Szyrmer, J. M. (1992). Input—output coefficients and multipliers from a total-flow perspective. Environment and Planning A: Economy and Space, 24(7), 921–937. https://doi.org/10.1068/a240921
  • Szyrmer, J., & Walker, R. (1983). Interregional total flow: A concept and application to a U.S. Input–Output Model. Review of Regional Studies, 13, 12–21.
  • Tokito, S. (2018). Environmentally-targeted sectors and linkages in the global supply-chain complexity of transport equipment. Ecological Economics, 150, 177–183. https://doi.org/10.1016/j.ecolecon.2018.04.017
  • Tokito, S., Kagawa, S., & Hanaka, T. (2022). Hypothetical extraction, betweenness centrality, and supply chain complexity. Economic Systems Research, 34(1), 111–128. https://doi.org/10.1080/09535314.2020.1848807
  • Transforming our world: The 2030 Agenda for Sustainable Development. (2015). UN General Assembly.
  • Ward, H., Radebach, A., Vierhaus, I., Fügenschuh, A., & Steckel, J. C. (2017). Reducing global CO 2 emissions with the technologies we have. Resource and Energy Economics, 49, 201–217. https://doi.org/10.1016/j.reseneeco.2017.05.001
  • Wiedmann, T., & Lenzen, M. (2018). Environmental and social footprints of international trade. Nature Geoscience, 11(5), 314–321. https://doi.org/10.1038/s41561-018-0113-9
  • Wiedmann, T., Schandl, H., Lenzen, M., Moran, D., Suh, S., West, J., & Kanemoto, K. (2015). The material footprint of nations. Proceedings of the National Academy of Sciences, 112(20), 6271–6276. https://doi.org/10.1073/pnas.1220362110
  • Wood, R., Neuhoff, K., Moran, D., Simas, M., Grubb, M., & Stadler, K. (2020). The structure, drivers and policy implications of the European carbon footprint. Climate Policy, 20(sup1), S39–S57. https://doi.org/10.1080/14693062.2019.1639489
  • Wood, R., Stadler, K., Simas, M., Bulavskaya, T., Giljum, S., Lutter, S., & Tukker, A. (2018). Growth in environmental footprints and environmental impacts embodied in trade: Resource efficiency indicators from EXIOBASE3. Journal of Industrial Ecology, 22(3), 553–564. https://doi.org/10.1111/jiec.12735
  • World Bank. (2022). State and Trends of Carbon Pricing 2022. http://hdl.handle.net/10986/37455.
  • Xiao, H., Meng, B., Ye, J., & Li, S. (2020). Are global value chains truly global? Economic Systems Research, 32(4), 540–564. https://doi.org/10.1080/09535314.2020.1783643
  • Zhang, Z., Guan, D., Wang, R., Meng, J., Zheng, H., Zhu, K., & Du, H. (2020). Embodied carbon emissions in the supply chains of multinational enterprises. Nature Climate Change, 10(12), 1096–1101. https://doi.org/10.1038/s41558-020-0895-9
  • Zhang, Z., Zhang, Z., & Zhu, K. (2020). Allocating carbon responsibility: The role of spatial production fragmentation. Energy Economics, 87, 104491. https://doi.org/10.1016/j.eneco.2019.104491
  • Zhang, Z., Zhu, K., & Hewings, G. J. D. (2017). The effects of border-crossing frequencies associated with carbon footprints on border carbon adjustments. Energy Economics, 65, 105–114. https://doi.org/10.1016/j.eneco.2017.04.017

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.