Indirect energy subsidies embodied in the export of China: An output-input approach

摘要

China's indirect energy subsidies which transfer to foreign consumer are huge. In this paper, we explore the input-output analysis to estimate the embodied energy of 33 non-energy sectors and use price-gap method to calculate energy subsidies in export. Results show that China is a major exporter of energy, the increasing exports of high energy-intensive goods caused 230 million tons of standard coal, accounting for 10% of China's total energy consumption in 2007, transfer to foreigners, and, China's indirect energy subsidies in exports was up to 32.47 billion Yuan. We suggest that the energy price reform and the phasing-out of fossil-fuel subsidies should be considered in the policy design and reallocate more to support renewable energy industry, which could improve the terms of trade and favoring the environment of china.