Inter-regional spillover of carbon emissions and employment in China: Is it positive or negative?

Abstract

International and inter-regional trade in China has been promoted, the economic and environmental impacts of which are significant in regional development. In this paper, we analyzed the evolution of inter-regional spillover of carbon emissions and employment in China from 2007 to 2012 with structural decomposition method and multi-regional input-output tables. The index of carbon emission per employee (ICE) is designed and compared to indicate positive or negative spillover effects. We find that carbon emissions grow much more rapidly in interior regions than in coastal regions, due to spillover effects and own influences. Spillover effects rarely reduce the ICE of destination regions, but the own influences can decrease it in most regions. Although spillover may contribute to economic development in most regions, it is hardly a driver of efficiency improvement in destination regions. Based on these empirical findings, we put forward specific suggestions to improve the positive spillover effects on different kinds of regions.