Linking Agricultural GHG Emissions to Global Trade Network

Abstract

Abstract As part of the climate policy to meet the 2 °C target, actions in all economic sectors, including agriculture, are required to mitigate global greenhouse gas emissions. While there has been an ever‐increasing focus on agricultural greenhouse gas (AGHG) emissions, limited attention has been paid to their economic drivers in the globalized world economy and related mitigation potentials. This paper makes a first attempt to trace AGHG emissions via global trade networks using a multiregional input‐output model and a complex network model. Over one third of global AGHG emissions in 2012 can be linked with products traded internationally, of which intermediate trade and final trade contribute 64.2% and 35.8%, respectively. Japan, the United States, Germany, the United Kingdom, and Hong Kong are the world's five largest net importers of embodied emissions, while Ethiopia, Australia, Pakistan, India, and Argentina are the five largest net exporters. Some hunger‐afflicted developing countries in Asia and Africa are important embodied emission exporters, due to their large‐scale exports of agricultural products. Trade‐related virtual AGHG emission transfers shape a highly heterogenous network, due to the coexistence of numerous peripheral economies and a few highly connected hub economies. The network clustering structure is revealed by the regional integration of several trading communities, while hub economies are collectors and distributors in the global trade network, with important implications for emission mitigation. Achieving AGHG emission reduction calls for a combination of supply‐ and demand‐side policies covering the global trade network.

Keywords

• agricultural GHG emissions
• multiregional input‐output analysis
• international trade
• network analysis
• globalized world economy