Skip to main content

Advertisement

Log in

Factors influencing embodied energy trade between the Belt and Road countries: a gravity approach

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

Against the backdrop of current global collaboration on mitigating carbon emissions, how to reduce the energy uses in the Belt and Road Initiative area becomes an urgent and big challenge facing the global community. Using the Eora input-output database, this paper accounts the embodied energy trade between Belt and Road countries in 2015, followed by an investigation of the factors influencing the embodied energy trade through a panel gravity model. Global value chain participation and position are two newly considered factors in analyzing the determinants of embodied energy flow. We find that the main bilateral embodied flow paths are from South Korea to China, China to South Korea, Singapore to China, Ukraine to Russia, and Malaysia to Singapore. Five percent embodied energy flow paths account for 80% of the total bilateral embodied energy flow volume between Belt and Road countries. The gravity model results indicate that gross domestic product (GDP) per capita, population, global value chain participation are the key drivers of bilateral embodied energy trade, while the industrial share of GDP and global value chain position are negatively related to the trade. Energy intensity plays a crucial role in reducing the bilateral embodied energy flow. These results are useful in the policymaking of sustainable development for the Belt and Road Initiative.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Data availability

The authors declare that data supporting the findings of this study are available within the article.

Notes

  1. Eora has been widely used in the time series studies of energy and energy-related carbon emissions. For example, Lan et al. (2016) quantified drivers for changes in global energy footprints from 1990 to 2010. Han et al. (2020b) comprehensively analyzed the carbon inequality and regional development and compared the carbon emissions in and outside the Belt and Road area from 1990 to 2015. Onat and Kucukvar (2020) conducted a time series analysis of construction industries’ carbon emissions from1995 to 2012. Wang et al. (2020a) evaluated the environmental performances of global supply chains in manufacturing sectors from 2005 to 2014. Li et al. (2021) analyzed evolution of the global oil supply chain using the Eora database from 2000 to 2015. Energy consumption data are usually used in environmental input-output analysis, which may suffer from the updating frequency of energy dataset. Some efforts are made to address this time-lag issue by adopting system input-output analysis approach and using energy exploration data from IEA, see Li et al. (2021) for instance and more methodology discussions in Chen and Wu (2017). Unfortunately, their energy/emission datasets are not directly shared in their publications. Sharing more information could promote relevant studies.

References

  • Anderson JE (1979) A theoretical foundation for the gravity equation. Am Econ Rev 69:106–116

    Google Scholar 

  • Anderson JE, van Wincoop E (2003) Gravity with gravitas: a solution to the border puzzle. Am Econ Rev 93:170–192

    Article  Google Scholar 

  • Aslam, A., Novta, N., Rodrigues-Bastos, F. (2017) Calculating trade in value added. International Monetary Fund Working Papers

  • Backer KD, Miroudot S (2013) Mapping global value chains. OECD Trade Policy Papers.

  • Baltagi BH, Egger P, Pfaffermayr M (2003) A generalized design for bilateral trade flow models. Econ Lett 80:391–397

    Article  Google Scholar 

  • Bergstrand JH (1985) The gravity equation in international trade: some microeconomic foundations and empirical evidence. Rev Econ Stat 67:474–481

    Article  Google Scholar 

  • Bergstrand JH (1989) The generalized gravity equation, monopolistic competition, and the factor-proportions theory in international trade. Rev Econ Stat 71:143–153

    Article  Google Scholar 

  • Brown MT, Herendeen RA (1996) Embodied energy analysis and emergy analysis: a comparative view. Ecol Econ 19:219–235

    Article  Google Scholar 

  • Bullard CW, Herendeen RA (1975) Energy cost of goods and services. Energy Policy 3:268–278

    Article  Google Scholar 

  • Camacho, J.A., Almeida, L.D., Rodriguez, M., Molina, J., 2021. Domestic versus foreign energy use: an analysis for four European countries. Environment Development and Sustainability.

    Google Scholar 

  • Chaney T (2018) The gravity equation in international trade: an explanation. J Polit Econ 126:150–177

    Article  Google Scholar 

  • Chen B, Li JS, Wu XF, Han MY, Zeng L, Li Z, Chen GQ (2018) Global energy flows embodied in international trade: a combination of environmentally extended input-output analysis and complex network analysis. Appl Energy 210:98–107

    Article  Google Scholar 

  • Chen GQ, Han MY (2015) Global supply chain of arable land use: production-based and consumption-based trade imbalance. Land Use Policy 49:118–130

    Article  Google Scholar 

  • Chen GQ, Wu XF (2017) Energy overview for globalized world economy: source, supply chain and sink. Renew Sust Energ Rev 69:735–749

    Article  CAS  Google Scholar 

  • Chen WM, Wu SM, Lei YL, Li ST (2017) Interprovincial transfer of embodied energy between the Jing-Jin-Ji area and other provinces in China: a quantification using interprovincial input-output model. Sci Total Environ 584:990–1003

    Article  Google Scholar 

  • Chen ZM, Chen GQ (2011) An overview of energy consumption of the globalized world economy. Energy Policy 39:5920–5928

    Article  Google Scholar 

  • Chen ZM, Chen GQ (2013) Demand-driven energy requirement of world economy 2007: a multi-region input-output network simulation. Commun Nonlinear Sci Numer Simul 18:1757–1774

    Article  Google Scholar 

  • Cheng C, Ge C (2020) Green development assessment for countries along the belt and road. J Environ Manag 263:110344

    Article  Google Scholar 

  • Cortes-Borda D, Guillen-Gosalbez G, Jimenez L (2015) Solar energy embodied in international trade of goods and services: a multi-regional input-output approach. Energy 82:578–588

    Article  Google Scholar 

  • Costanza R (1980) Embodied energy and economic valuation. Science 210:1219–1224

    Article  CAS  Google Scholar 

  • de Groot HLF, Linders GJ, Rietveld P, Subramanian U (2004) The institutional determinants of bilateral trade patterns. Kyklos 57:103–123

    Article  Google Scholar 

  • de Sousa J (2012) The currency union effect on trade is decreasing over time. Econ Lett 117:917–920

    Article  Google Scholar 

  • Duarte R, Pinilla V, Serrano A (2018) Factors driving embodied carbon in international trade: a multiregional input-output gravity model. Econ Syst Res 30:545–566

    Article  Google Scholar 

  • Duarte R, Pinilla V, Serrano A (2019) Long term drivers of global virtual water trade: a trade gravity approach for 1965–2010. Ecol Econ 156:318–326

    Article  Google Scholar 

  • Eaton J, Kortum S (2002) Technology, geography, and trade. Econometrica 70:1741–1779

    Article  Google Scholar 

  • Feng KS, Siu YL, Guan DB, Hubacek K (2012) Analyzing drivers of regional carbon dioxide emissions for China: a structural decomposition analysis. J Ind Ecol 16:600–611

    Article  CAS  Google Scholar 

  • Fracasso A (2014) A gravity model of virtual water trade. Ecol Econ 108:215–228

    Article  Google Scholar 

  • Gao CX, Su B, Sun M, Zhang XL, Zhang ZH (2018) Interprovincial transfer of embodied primary energy in China: a complex network approach. Appl Energy 215:792–807

    Article  Google Scholar 

  • Guo S, Han M, Yang Y, Di H (2020) Embodied energy flows in China’s economic zones: Jing-Jin-Ji, Yangtze-River-Delta and Pearl-River-Delta. J Clean Prod 268:121710

    Article  Google Scholar 

  • Guo S, Li Y, He P, Chen H, Meng J (2021) Embodied energy use of China’s megacities: a comparative study of Beijing and Shanghai. Energy Policy 155:112243

    Article  Google Scholar 

  • Han M, Xiong J, Liu W (2020a) China’s cross-border energy relations between direct trade and embodied transfers: based on “the Belt and Road” energy cooperation. J Nat Resour 35:2674–2686

    Google Scholar 

  • Han M, Lao J, Yao Q, Zhang B, Meng J (2020b) Carbon inequality and economic development across the Belt and Road regions. J Environ Manag 262:110250

    Article  Google Scholar 

  • Islam M, Kanemoto K, Managi S (2019) Growth potential for CO 2 emissions transfer by tariff reduction. Environ Res Lett 14:024011

    Article  CAS  Google Scholar 

  • Jiang L, He S, Tian X, Zhang B, Zhou H (2020) Energy use embodied in international trade of 39 countries: spatial transfer patterns and driving factors. Energy 195:116988

    Article  Google Scholar 

  • Jiang M, An H, Gao X, Jia N, Liu S, Zheng H (2021) Structural decomposition analysis of global carbon emissions: the contributions of domestic and international input changes. J Environ Manag 294:112942

    Article  CAS  Google Scholar 

  • Judson RA, Owen AL (1999) Estimating dynamic panel data models: a guide for macroeconomists. Econ Lett 65:9–15

    Article  Google Scholar 

  • Kan S, Chen B, Meng J, Chen G (2020) An extended overview of natural gas use embodied in world economy and supply chains: policy implications from a time series analysis. Energy Policy 137:111068

    Article  Google Scholar 

  • Lam KL, Kenway SJ, Lane JL, Islam KMN, Bes de Berc R (2019) Energy intensity and embodied energy flow in Australia: an input-output analysis. J Clean Prod 226:357–368

    Article  Google Scholar 

  • Lan J, Malik A, Lenzen M, McBain D, Kanemoto K (2016) A structural decomposition analysis of global energy footprints. Appl Energy 163:436–451

    Article  Google Scholar 

  • Lenzen M, Kanemoto K, Moran D, Geschke A (2012) Mapping the structure of the world economy. Environ Sci Technol 46:8374–8381

    Article  CAS  Google Scholar 

  • Lenzen M, Moran D, Kanemoto K, Geschke A (2013) Building Eora: a global multi-regional input-output database at high country and sector resolution. Econ Syst Res 25:20–49

    Article  Google Scholar 

  • Li, X., Meng, B., Wang, Z. (2019) Global value chain development report 2019: technological innovation, supply chain trade and workers in a globalized world, in: Dollar, D., Ganne, E., Stolzenburg, V., Wang, Z. (Eds.), Global value chain development report, World Bank Group, World Trade Organization (WTO), Organisation for Economic Co-operation and Development (OECD), Institute of Developing Economies (IDE-JETRO), and Research Center of Global Value Chains of the University of International Business and Economics (UIBE).

  • Li Y, Chen B, Chen G, Wu X (2021) The global oil supply chain: the essential role of non-oil product as revealed by a comparison between physical and virtual oil trade patterns. Resour Conserv Recycl 175:105836

    Article  Google Scholar 

  • Liu Z, Geng Y, Lindner S, Zhao HY, Fujita T, Guan DB (2012) Embodied energy use in China’s industrial sectors. Energy Policy 49:751–758

    Article  Google Scholar 

  • Mayer, T., Zignago, S., 2012. Notes on CEPII’s distances measures: the GeoDist database.

    Google Scholar 

  • Meng J, Yang H, Yi K, Liu J, Guan D, Liu Z, Mi Z, Coffman DM, Wang X, Zhong Q, Huang T, Meng W, Tao S (2019) The slowdown in global air-pollutant emission growth and driving factors. One Earth 1:138–148

    Article  Google Scholar 

  • Miller RE, Blair PD (2009) Input-output analysis: foundations and extensions. Cambridge University Press

    Book  Google Scholar 

  • Nibedita B, Irfan M (2021) The role of energy efficiency and energy diversity in reducing carbon emissions: empirical evidence on the long-run trade-off or synergy in emerging economies. Environ Sci Pollut Res

  • Onat NC, Kucukvar M (2020) Carbon footprint of construction industry: a global review and supply chain analysis. Renew Sust Energ Rev 124:109783

    Article  Google Scholar 

  • Peters GP (2008) From production-based to consumption-based national emission inventories. Ecol Econ 65:13–23

    Article  Google Scholar 

  • Peters GP, Hertwich EG (2008) CO2 embodied in international trade with implications for global climate policy. Environ Sci Technol 42:1401–1407

    Article  CAS  Google Scholar 

  • Qi S, Peng H, Zhang X, Tan X (2019) Is energy efficiency of Belt and Road Initiative countries catching up or falling behind? Evidence from a panel quantile regression approach. Appl Energy 253:113581

    Article  Google Scholar 

  • Serrano MÁ, Boguñá M (2003) Topology of the world trade web. Phys Rev E 68:015101

    Article  Google Scholar 

  • Shepard JU, Pratson LF (2020) Hybrid input-output analysis of embodied energy security. Appl Energy 279:115806

    Article  Google Scholar 

  • Shi JL, Li HJ, Guan JH, Sun XQ, Guan Q, Liu XJ (2017) Evolutionary features of global embodied energy flow between sectors: a complex network approach. Energy 140:395–405

    Article  Google Scholar 

  • Song Z, Zhu Q, Han M (2021) Tele-connection of global crude oil network: comparisons between direct trade and embodied flows. Energy 217:119359

    Article  Google Scholar 

  • Su B, Ang BW (2011) Multi-region input-output analysis of CO2 emissions embodied in trade: the feedback effects. Ecol Econ 71:42–53

    Article  Google Scholar 

  • Su B, Ang BW (2012) Structural decomposition analysis applied to energy and emissions: some methodological developments. Energy Econ 34:177–188

    Article  Google Scholar 

  • Sun X (2018) Evolution of global embodied energy flow patterns based on input-output network, School of Economics and Management. China University of Geosciences, Beijing, Beijing

    Google Scholar 

  • Sun XQ, An HZ, Gao XY, Jia XL, Liu XJ (2016) Indirect energy flow between industrial sectors in China: a complex network approach. Energy 94:195–205

    Article  Google Scholar 

  • Tao F, Xu Z, Duncan AA, Xia XH, Wu XF, Li JY (2018) Driving forces of energy embodied in China-EU manufacturing trade from 1995 to 2011. Resour Conserv Recycl 136:324–334

    Article  Google Scholar 

  • Tian X, Rui W, Geng Y, Bleischwitz R, Che YH (2017) Environmental and resources footprints between China and EU countries. J Clean Prod 168:322–330

    Article  Google Scholar 

  • Tinbergen J (1962) An analysis of world trade flows. Shaping the World Economy 3:1–117

    Google Scholar 

  • Wang H, Ang BW, Su B (2017) Assessing drivers of economy-wide energy use and emissions: IDA versus SDA. Energy Policy 107:585–599

    Article  Google Scholar 

  • Wang H, Pan C, Wang Q, Zhou P (2020a) Assessing sustainability performance of global supply chains: an input-output modeling approach. Eur J Oper Res 285:393–404

    Article  Google Scholar 

  • Wang Q, Han X (2021) Is decoupling embodied carbon emissions from economic output in Sino-US trade possible? Technol Forecast Soc Chang 169:120805

    Article  Google Scholar 

  • Wang Q, Liu Y (2021) India’s renewable energy: new insights from multi-regional input output and structural decomposition analysis. J Clean Prod 283:124230

    Article  Google Scholar 

  • Wang Q, Song X, Liu Y (2020b) China’s coal consumption in a globalizing world: Insights from Multi-Regional Input-Output and structural decomposition analysis. Sci Total Environ 711:134790

    Article  CAS  Google Scholar 

  • Wang WW, Liu X, Zhang M, Song XF (2014) Using a new generalized LMDI (logarithmic mean Divisia index) method to analyze China’s energy consumption. Energy 67:617–622

    Article  Google Scholar 

  • Wang Z, Li C, Liu Q, Niu B, Peng S, Deng L, Kang P, Zhang X (2019) Pollution haven hypothesis of domestic trade in China: a perspective of SO2 emissions. Sci Total Environ 663:198–205

    Article  CAS  Google Scholar 

  • Wiedmann T, Lenzen M (2018) Environmental and social footprints of international trade. Nat Geosci 11:314–321

    Article  CAS  Google Scholar 

  • Wiedmann T, Lenzen M, Turner K, Barrett J (2007) Examining the global environmental impact of regional consumption activities—part 2: review of input-output models for the assessment of environmental impacts embodied in trade. Ecol Econ 61:15–26

    Article  Google Scholar 

  • Wiedmann TO, Schandl H, Lenzen M, Moran D, Suh S, West J, Kanemoto K (2015) The material footprint of nations. Proc Natl Acad Sci U S A 112:6271–6276

    Article  CAS  Google Scholar 

  • Wu XF, Chen GQ (2017) Global primary energy use associated with production, consumption and international trade. Energy Policy 111:85–94

    Article  Google Scholar 

  • Xie S-C (2014) The driving forces of China’s energy use from 1992 to 2010: an empirical study of input–output and structural decomposition analysis. Energy Policy 73:401–415

    Article  Google Scholar 

  • Yang RR, Long RY, Yue T, Shi HH (2014) Calculation of embodied energy in Sino-USA trade: 1997-2011. Energy Policy 72:110–119

    Article  Google Scholar 

  • Zhai MY, Huang GH, Liu LR, Xu XL, Li JZ (2019) Transfer of virtual water embodied in food: a new perspective. Sci Total Environ 659:872–883

    Article  CAS  Google Scholar 

  • Zhang B, Bai S, Ning Y (2021) Embodied energy in export flows along global value chain: a case study of China’s Export trade. Front Energy Res 9:9

    Google Scholar 

  • Zhang B, Qiao H, Chen ZM, Chen B (2016) Growth in embodied energy transfers via China’s domestic trade: evidence from multi-regional input-output analysis. Appl Energy 184:1093–1105

    Article  Google Scholar 

  • Zhang Y, Zhang JH, Tian Q, Liu ZH, Zhang HL (2018) Virtual water trade of agricultural products: a new perspective to explore the Belt and Road. Sci Total Environ 622:988–996

    Article  Google Scholar 

  • Zhang Z, Xi L, Bin S, Yuhuan Z, Song W, Ya L, Hao L, Yongfeng Z, Ashfaq A, Guang S (2019) Energy, CO2 emissions, and value added flows embodied in the international trade of the BRICS group: a comprehensive assessment. Renew Sust Energ Rev 116:109432

    Article  Google Scholar 

  • Zhao N, Xu LX, Malik A, Song XG, Wang YF (2018) Inter-provincial trade driving energy consumption in China. Resour Conserv Recycl 134:329–335

    Article  Google Scholar 

  • Zhu B, Su B, Li Y, Ng TS (2020) Embodied energy and intensity in China’s (normal and processing) exports and their driving forces, 2005-2015. Energy Econ 91:104911

    Article  Google Scholar 

Download references

Acknowledgements

We are thankful to Prof. Haizhong An, Dr. Weiqiong Zhong, Dr. Xiaojia Liu, Dr. Meihui Jiang, Dr. Qing Guan, and Prof. Ronald Ripple for their insightful comments and language checks to improve this paper. Meanwhile, we are thankful to Dr. Mengjiao Wang for her help in the panel data analysis. Finally, we are incredibly grateful to the reviewers who help us improve this paper a lot.

Funding

We much appreciate the financial supports from the National Natural Science Foundation of China (Grant No. 41901246), the Humanities and Social Sciences Foundation of the Ministry of Education of China (Grant No. 20YJC790110), and the Basic and Applied Research Co-Foundation under the Science Technology Department of Guangdong (Grant No. 2019A1515110693).

Author information

Authors and Affiliations

Authors

Contributions

Dr. XS is responsible for conceptualization, methodology, formal analysis, software, and revising the introduction, and Dr. QS is responsible for writing original and revised draft, and visualization.

Corresponding author

Correspondence to Qing Shi.

Ethics declarations

Ethical approval

Not applicable.

Consent to participate

Not applicable.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Ilhan Ozturk

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix

Appendix

Table 5 List of BRI countries

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Sun, X., Shi, Q. Factors influencing embodied energy trade between the Belt and Road countries: a gravity approach. Environ Sci Pollut Res 29, 11574–11589 (2022). https://doi.org/10.1007/s11356-021-16457-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-021-16457-y

Keywords

Navigation