Production vs Consumption based CO2 emissions

Production-based CO2 emissions is the amount of CO2 emitted in a particular country.
Consumption-based CO2 emissions are adjusted for trade and reflect CO2 emissions related to goods and services consumed in a particular country.

Explanation of production vs Consumption-based CO2 emissions

Suppose the UK used to produce its own steel, the production process would cause CO2 emissions reflected in UK stats. However, suppose the UK steel industry closes down and the UK now imports steel from China. Closing the UK steel industry would see a fall in UK CO2 emissions and a rise in Chinese CO2 emissions.

However, although the UK shows less production of CO2, the CO2 emissions still relate to UK based consumption.

Countries with a large trade deficit, (exports less than imports of goods) usually have lower production CO2 emissions than consumption

Example of UK consumption and production

In the early 1980s, the UK experienced a period of deindustrialisation (a decline in manufacturing industries). Since the 1980s, the UK has largely run a current account deficit and especially a deficit on import of goods. Therefore, CO2 from production emissions are lower than CO2 emissions relating to consumption in the UK.

current-account-from-1987 — UK current account from 1987 – mostly a deficit reflecting net imports of goods.

China CO2 emissions per capita – Production and consumption

As China is a net exporter of manufactured goods, we see higher levels of CO2 from production than domestic consumption. Since 2000, this gap has widened, though both production and consumption levels have increased quickly.

US CO2 emissions

In the 1990s, consumption and production levels of CO2 were very similar. A reflection of the US oil industry and relatively smaller share of trade. However, since 2000, consumption levels of CO2 have been marginally higher than production levels.

Qatar

Qatar has the highest level of CO2 emissions per capita, due to its energy-based economy – natural gas and oil. However, consumption-based CO2 emissions reduce this level.