Note: National debt is different to ‘External debt‘ – External debt includes all the debt a country (both private and public sector) owes to foreigners.
A historical look at US National debt from 1790 to 2021 The national debt is basically the amount the government owe to the private sector and other holders of US Treasuries. National debt is the accumulation of government borrowing over many years. The budget deficit is the annual amount the US government need to borrow …
Since April 2019, London has imposed a charge on diesel cars with high emissions driving into the centre of London. In October the charging area (Ultra Low emission zone ULEZ) will expand to include more of the city. The idea is to place a financial cost on those vehicles which cause air pollution. It provides …
When I set up my blog, I used Google Feedburner for RSS and daily email. Google has closed down Feedburner and after a long time I have found a suitable alternative to Feedburner – Follow.it It will deliver daily blog posts as email. You can change your settings here Follow.it Economics So you can decide …
Readers Question: Is education a consumption good or investment good? And why I would say education can be both a consumption good and an investment good. Consumption is defined as spending money on a good or service for the acquisition of utility. Investment is defined as spending money on a good or service for the …
Since the mid-1960s, the UK has seen a 40% fall in total CO2 emissions. CO2 Emissions are now below levels seen at the end of the industrial revolution. Summary of why CO2 is falling Decline in coal-powered stations. In 2012, coal generated 41 per cent of the country’s electricity. By 2019, it supplied just 2 …
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.
In recent years, China has accelerated past the United States and is the biggest polluter in absolute terms, (which is unsurprising given China’s population and fast economic growth. India is also catching up.)
Biggest CO2 Polluters per capita
This measures the level of CO2 per person. Thus China with the highest CO2 in absolute terms is ranked considerably lower down.
The highest CO2 Polluters per capita are dominated by oil producing countries who refine oil and emit CO2 in the oil extraction and refining process.
Consumption-based emissions (trade adjusted)
It is worth bearing in mind that this data shows CO2 production in a country. CO2 by consumption would look different. For example, the UK is a net importer of CO2. In recent decades, the UK has reduced CO2 emissions per capita because manufacturing has declined and we import goods from other countries. In other words, CO2 emissions are produced elsewhere but the UK enjoy the goods.
