Environmental Engineering Reference
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X
CI it ¼ ϕ 0 þ ϕ 1 IIT it þ
μ i d i þ γ it
(9.7)
where CI it is carbon intensity, IIT it is the intra-industry trade index, d i is the dummy
variable of industries,
ϕ 0 is a constant term,
γ it
is an error term.
9.3.4 Examination of the “Pollution Haven Hypothesis”
As the impact of global warming is serious, governments have begun to regard CO 2
as “pollution” and limit its emissions. Some researchers apply the “pollution haven
hypothesis” to the carbon emissions; they argue that environmental standards of
developing countries are significantly lower than those of developed countries,
which will leads to carbon intensive industries transfering from developed countries
to developing countries. To examine this view, we analyze the share of China-Japan
export goods in total trade value and try to find evidence about carbon intensive
industry transfer between China and Japan.
9.4
Data Sources
The trade data used in this study were obtained from China's Customs Bureau
of Statistics website, and the CO 2 emission data were from Energy Information
Analysis (EIA). Input-output tables were from China's National Bureau of Statis-
tics (42 sectors) and Japan's Statistics Bureau Ministry of Internal Affairs
(34 sectors). The traded goods were classified according to China Customs HS
code (the first classification, 22 categories). Industry-level carbon emissions data
came from the energy consumption scale of China's National Bureau of Statistics.
We use the conversion coefficients of standard coal to calculate the direct carbon
emissions volume. The coefficients obtained from China's Energy Statistical
Yearbook are 0.676 (crude oil), 0.657 (diesel oil), 0.620 (petrol), 0.523 (natural
gas), 0.770 (raw coal), 0.765 (coke); the units are tons of carbon/ tons of standard
coal. 10 The industry-level carbon emissions data for Japan came from the Energy
Balance table of Japan's Bureau of Statistics.
We combine some sectors of the input-output tables to make them fit with the
energy balance tables. We selected the top 10 categories of exported goods in each
country; these goods account for 87.49 % of China's total exports and 98.44 % of
Japan's total exports (Table 9.1 presents the categories and the percentages of the
exported goods of China and Japan). The final 10 categories of export goods we
selected for analysis are Textiles (the eleventh category), Paper Making (the tenth
category), Chemical Products (the combination of the sixth and seventh categories),
Mineral Products (the fifth category), Steel and Steel Products (the fifteenth cate-
gory), Machinery (the combination of the sixteenth and the eighteenth categories),
10 Qiang [ 19 ].
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