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The impact of international trade on greenhouse gas (GHG) emissions has primarily been viewed through the lens of emissions embodied in goods, which flow from lower-income to higher-income countries. This trade has been interpreted as allowing the high-income countries to shirk their responsibilities to address the global climate challenge by offshoring emissions. However, international trade may also have an impact on climate through flows from higher-income to lower-income countries, particularly long-lived capital and durable goods that have the potential to avoid future emissions. Given the innovation resources concentrated in higher-income countries and their historic domination of trade in such long-lived goods, this concept may balance the scales to some degree. This paper briefly develops the concept of future avoided emissions and illustrates it with the empirical case of the United States' trade in battery electric vehicles (BEVs) from 2017 to 2020. • Trade in capital goods may reduce future emissions in importing countries. • Such trade may balance trade in goods that embody emissions. • Trade in BEVs is an example, reducing future emissions from conventional cars. • A case study of US BEV trade reveals a surplus in future avoided emissions. [ABSTRACT FROM AUTHOR]

A critical reason for China-United States trade friction is that China has a huge trade balance, especially the trade balance of goods. However, this huge trade balance is based on the results of official statistics and does not reflect the real economic benefits and environmental costs embodied in China-US trade, where both refer to trade in value-added and embodied CO 2 emission costs, respectively. This paper calculates the trade in value-added and carbon emission transfer between China and the United States based on the World Input-Output Database. Results demonstrate that: (1) Gross trade statistics seriously overestimate China's benefits in China-US trade. The China-US trade surplus, based on gross trade statistics, is 20% higher than when based on trade in value-added accounting. (2) In China-US bilateral trade, China mainly adopts the trade model of importing intermediate products and exporting final products，whereas the United States mainly adopts the trade model of importing final products and exporting intermediate products. China's exports to the United States contain many of value-added in Korea, Taiwan, and Japan. (3) From 2000 through 2014, China maintained a large surplus of CO 2 emissions exports to the United States, and China paid a huge environmental cost in its trade with the United States. (4) In China-US trade, China's environmental costs per unit value-added is 3.02 times that of the United States. • Real economic benefits and environmental costs between China-US trade are accounted. • Based on trade in value-added accounting, The China-US trade surplus decrease by 20%. • China's environmental costs per unit value-added is 3.02 times that of US in China-US trade. [ABSTRACT FROM AUTHOR]