CO2 Emissions Embodied in International Trade of the UK, 1995-2009: A Multi-Region Input–Output Analysis

Abstract: In a globalized world with increasing international trade, it is highly important to accurately determine environmental impacts resulting from pollution embodied in trade. This study examines carbon dioxide (CO2) emissions embodied in international trade of the United Kingdom from a consumption perspective, rather than the more conventional production side, during the period 1995-2009. The analysis is based on Multi-Region Input Output (MRIO) model covering 35 sectors and 41 countries. The results show that during the entire study period CO2 emissions associated with UK imports from abroad were greater than CO2 emissions associated with UK exports. The balance of emissions embodied in trade has grown from -48 MtCO2 in 1995 to -110 MtCO2 in 2009. The share of imports from non-Annex B countries have risen by more than 10% since 1995 and accounted to 35% (57% when RoW is considered as non-Annex B region) of all imports in 2009. The results of this study also show that on average 68% of emissions embodied in UK imports originate from energy intensive manufacturing sectors and additional 8% from energy intensive non manufacturing sectors. In contrast to production based emissions, consumption based accounts clearly show that global CO2 emissions associated with UK consumption have not declined over time but actually increased.