Production fragmentation has changed the distribution pattern of value added and thus emissions among countries. As a consequence, the gross trade statistics and territory-based emissions cannot reveal the real picture and generate misleading conclusions. In this aspect, input-output analysis, which describes the interdependence among industries and countries, becomes the suitable tool to reflect the true story and answer questions like “where is the value-added come from” and “who emits for whom”. Under this background, this paper reviews the
relevant researches that use input-output analysis to study trade and its impact on the environment, from which we can also understand the development of input-output analysis over time.
Keywords: input-output analysis, trade, the environment, embodied emissions
China Finance and Economic Review
Volume 8 Number 3 Autumn 2019.P112