China’s embodied energy trade: based on hypothetical extraction method and structural decomposition analysis

ABSTRACT In this paper, we employ multi-region input–output model to investigate China’s embodied energy trade in 1995–2009, and then we use hypothetical extraction method to explore the effect of Chinese foreign trade on the other countries or regions of the world after extracting the trade volume between China and the world. We find that China was a net export country of embodied energy, and there was pronounced discrepancy between the sectors in importing and exporting embodied energy, where the sector Electrical and Optical Equipment had the largest import and export in embodied energy. In 2009, China imported mainly from Korea and exported mainly to Japan. In addition, extracting trade from China and other countries not only influenced the embodied energy consumption of China but also consumption and trade of other countries. China’s government should pay more attention to sector differences when adopting policies like trade tax rate, and enhance cooperation with other countries.

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