Review of hidden carbon emissions, trade, and labor income share in China, 2001–2011

Coordinated development between the economy and the environment is currently one of the most important issues in China. By establishing models concerning labor income share and hidden carbon emissions, and taking trade as the link in their relationship, this study puts forward the scale effects, tec...

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Bibliographic Details
Published in:Energy policy 2014-11, Vol.74, p.395-405
Main Authors: Wang, Shu-Hong, Song, Ma-Lin
Format: Article
Language:English
Subjects:
Air pollution caused by fuel industries
Applied sciences
Carbon
Carbon emissions
China
China (People's Republic)
Economic models
Economic theory
Economics
Emission analysis
Emissions trading
Energy
Energy policy
Energy. Thermal use of fuels
Environmental economics
Environmental effects
Exact sciences and technology
General aspects
General. Regulations. Norms. Economy
Hidden carbon emissions
Income
International trade
Labor
Labor income share
Mathematical analysis
Mathematical models
Measurement
MIMIC
Pollution control
Regression analysis
Scale effect
Studies
Trade
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Summary:Coordinated development between the economy and the environment is currently one of the most important issues in China. By establishing models concerning labor income share and hidden carbon emissions, and taking trade as the link in their relationship, this study puts forward the scale effects, technological effects, and structural effects that relate to labor income share under the function of trade. We then establish multi-index and multi-indicator constitutive (MIMIC) equation to measure the ratio of hidden carbon emissions to total emissions, which is further considered the basis of the measurement model. Results of regression analysis carried out on labor income share show that hidden carbon emissions do have a positive effect on labor income share. In the meantime, we also prove that under scale effects, technological effects, and the structural effects of trade, hidden carbon emissions affect labor income shares in different directions. Our conclusions and policy implications are obtained from the calculated results. •This study establishes models concerning labor income share and hidden carbon emissions.•MIMIC is established to measure the ratio of hidden carbon emissions to total discharge.•Hidden carbon emissions have a positive effect on labor income share.•Hidden carbon emissions have various effects on the labor income share.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2014.08.038