Estimation of CO2 Emissions Embodied in Domestic Trade and Their Influencing Factors in Japan

Abstract

CO2 emissions embodied in domestic trade between Japanese prefectures are gradually increasing and becoming an important growth point in the country’s CO2 emissions. The primary objective of this study is to evaluate the CO2 emissions embodied in Japan’s domestic imports and exports to visualize the carbon transfer paths between prefectures according to the attributes of production and consumption: also to identify the influencing factors of the carbon flow. This study estimated the CO2 emissions embodied in domestic imports and exports by prefectures using input–output analysis, followed by the log-mean Divisia index decomposition approach, which is used to quantify the influencing factor of net export CO2 emissions across prefectures. The results show substantial regional differences in the CO2 emissions embodied in domestic imports and exports across prefectures. Manufacturing prefectures satisfy most of Japan’s domestic demand for industrial products and are the main net exporters of CO2 emissions. Carbon flow is more obvious in economically advanced regions (such as the Kanto and Kansai regions) and covers more prefectures through carbon transfer. Consumer prefectures import the most CO2 emissions and export large amounts of CO2 emissions to other prefectures. Among the three factors influencing net export CO2 emissions, the technology effect has the most significant impact through the carbon intensity of domestic trade flows. These findings highlight the substantial differences in CO2 emissions embodied in domestic trade and the influencing factors across prefectures in Japan. The responsibility for emission reduction is attributable to both manufacturing and consumer prefectures.