Revealing Environmental Inequality Hidden in China's Inter-regional Trade

Abstract

Trade among regions or countries not only allows the exchange of goods and services but also leads to the transfer of pollution. The unequal exchange of goods and services and associated value added and pollution may be subject to environmental inequality in China given that Chinese provinces are in different development stages. By using the latest multiregional input-output tables and the sectoral air pollutant emission inventory in 2012, we traced emissions and value added along China's domestic supply chains. Here, we show that 62%-76% of the consumption-based air-pollutant emissions of richer regions (Beijing-Tianjin, East Coast and South Coast) were outsourced to other regions; however, approximately 70% of the value added triggered by these region's final consumption was retained within the region. Some provinces in western China, such as Guizhou, Ningxia, and Yunnan, not only incurred net pollution inflows but also suffered a negative balance of value added when trading with rich provinces. Addressing such inequalities could provide not only a basis for determining each province's responsibility for pollution control but also a model for other emerging economies.