Double-edged sword: China’s free trade agreements reinforces embodied greenhouse gas transfers in agricultural products

Abstract

Abstract China, as the world’s largest importer, heavily relies on agricultural products. However, the impact of China’s free trade agreements (FTAs) on greenhouse gas (GHG) emissions embodied in agricultural product imports has been overlooked. It’s crucial to analyze changes in embodied GHG emissions resulting from FTAs. We categorize 367 agricultural products into 15 categories and construct a dataset on the embodied GHG emissions of these products imported by China from 119 countries between 2000 and 2015. Using the Propensity Score Matching (PSM)-progressive difference-in-differences (DID) method, our findings indicate that China’s FTAs have double-edged impact on agricultural product imports. It has positively influenced imports, with a 12.22% annual growth rate, promoting economic integration. However, it has negatively affected GHG emissions, leading to a 53.00% increase in emissions from agricultural imports. These findings highlight the importance of addressing production and consumption in reducing GHG strategies with agricultural products.