China's inter-regional spillover of carbon emissions and domestic supply chains

In this study, we apply the inter-regional input-output model to explain the relationship between China's inter-regional spillover of CO₂ emissions and domestic supply chains for 2002 and 2007. Based on this model, we propose alternative indicators such as the trade in CO₂ emissions, CO₂ emissions in trade and the regional trade balances of CO₂ emissions. Our results do not only reveal the nature and significance of inter-regional environmental spillover within China's domestic regions but also demonstrate how CO₂ emissions are created and distributed across regions via domestic and global production networks. Results show that a region's CO₂ emissions depend on its intra-regional production technology, energy use efficiency, as well as its position and participation degree in domestic and global supply chains.