Decomposition Analysis of CO<sub>2</sub> Emissions Embodied in the International Trade of Russia: Fid-Bau Portal

Decomposition Analysis of CO₂ Emissions Embodied in the International Trade of Russia

Chuanwang Sun / Lanyun Chen / Guangxiao Huang

Our study improves the decomposition method based on the input−output approach to analyze CO₂ emissions embodied in the international trade of Russia over the period from 1995 to 2014. The research finds out that carbon was transferred from the upstream resource sectors to the downstream manufacturing sectors and service sectors in Russia. Moreover, Russia was a net exporter of CO₂ emissions. 31.46% of Russia’s CO₂ emissions were generated for other countries’ consumption in 1999 while 10.68% in 2013. Basic resource and energy sectors were the significant emitters of exporting CO₂ emissions. Sectors from traditional manufacturing industries and modern technical industries played an important role in importing embodied CO₂ emissions of Russia. Moreover, the effect of modern technical industries on importing embodied CO₂ emissions was increasing. The period after 2003 witnessed a substantial decline in Russia’s carbon intensities, which was majorly due to the transformation of the energy structure. Decomposition analysis of CO₂ emissions embodied in the international trade can show the trading effect on embodied CO₂ emissions from both exporting and importing perspectives. Russia’s case is able to provide instructive implications to the global climate mitigation policy. Countries that burden CO₂ emissions for other countries’ consumption are encouraged to participate in the climate negotiation effectively and internalize environmental costs by products’ and services’ pricing in the international trade.