Delineating the embodied CO2 emissions in Canada's exports: Routes, drivers, and paths

Abstract

This study combined the World Input–Output Database and Asian Development Bank's Multiregional Input–Output database to investigate Canada's embodied CO₂ emissions in exports (EEE) for the period of 2000–2018. We examined the key drivers and paths through structural decomposition analysis and structural path analysis. First, the results showed that embodied emissions in the intermediate exports were the major contributor to Canada's EEE, and emission paths involving more than three countries were on the rise, indicating that the expansion of the global industrial supply chains has complicated the paths of Canada's EEE. Second, the factors such as emission intensity of sectors, export structure, and export scale, had varying influences on Canada's EEE over time. For several sectors, the benefit from reduced emission intensity was largely offset by the additional emissions from the increased export scale. Hence, the design of emission regulations should consider the heterogeneity of industrial sectors in order to mitigate emissions for the diverse industries in Canada. Third, energy and resource industries (e.g., electricity, petroleum, wood, metals, and so on) played an essential role in Canada's exports. A significant amount of embodied emissions was transferred from these sectors to the downstream sectors along the supply chain, indicating that abatement measures should be adopted from the whole life cycle perspective of a product/service through an integrated governance of the supply chain. This article met the requirements for a Gold–Silver JIE data openness badge described at http://jie.click/badges.