Which countries have offshored carbon dioxide emissions in net terms?

Abstract

We estimate the extent of emission offshoring at the country level in net terms. We define net emission onshoring as the difference between the emissions domestic producers generate by exporting and the emissions they avoid by importing. Using the multi-regional input–output (MRIO) model and the OECD Inter-Country Input-Output (ICIO) Table, we report levels and trends in net emission onshoring for 45 countries between 1995–2018. Service-oriented economies with trade deficits (USA, UK, India) are net offshoring emissions. China is net onshoring emissions. The scale of net onshoring is small relative to production-based emissions. National emissions and GDP have decoupled in many developed countries, even when accounting for trade. In a cross-section of countries, there is no robust association between net onshoring and per-capita income.