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Against the backdrop of China's carbon emission reduction targets and the promotion of the construction of a unified domestic market, what kind of carbon emission effect has market integration had in weakening regional barriers and optimizing resource allocation? This paper adopts a two-way fixed effects analysis based on China's provincial panel data from 2003 to 2019. It uses a mediation model to explore the relationship between market integration and carbon emissions. Furthermore, industrial rationalization and upgrade are the basis for examining whether a competitive or cooperative relationship exists between the carbon emission effects generated and promoting market integration between regions. The study finds a negative relationship between market integration and carbon emissions. In addition, there is significant heterogeneity in the effect of market integration on carbon emissions, and the influence effect is mainly in central China; industrial rationalization can play an enhanced role in the process of the negative impact of market integration on carbon emissions, further enhancing the negative contribution of market integration to carbon emissions. However, market integration can weaken its negative impact on carbon emissions with the industrial upgrade, and there may still be invisible barriers between regions in promoting market integration barriers. [ABSTRACT FROM AUTHOR]

This paper considers the Global Thermodynamic Potential (GTP) indicator to perform a unified assessment of greenhouse gas (GHG) emissions, and to systematically reveal the emission embodiment in the production, consumption, and international trade of the Chinese economy in 2007 as the most recent year available with input-output table and updated inventory data. The results show that the estimated total direct GHG emissions by the Chinese economy in 2007 amount to 10,657.5 Mt CO2-eq by the GTPs with 40.6% from CH4 emissions in magnitude of the same importance as CO2 emissions. The five sectors of Electric Power/Steam and Hot Water Production and Supply, Smelting and Pressing of Ferrous and Nonferrous Metals, Nonmetal Mineral Products, Agriculture, and Coal Mining and Dressing, are responsible for 83.3% of the total GHG emissions with different emission structures. The demands of coal and coal-electricity determine the structure of emission embodiment to an essential extent. The Construction sector holds the top GHG emissions embodied in both domestic production and domestic consumption. The GHG emission embodied in gross capital formation is more than those in other components of final demand characterized by extensive investment and limited household consumption. China is a net exporter of embodied GHG emissions, with a remarkable share of direct emission induced by international trade, such as textile products, industrial raw materials, and primary machinery and equipment products exports. The fractions of CH4 in the component of embodied GHG emissions in the final demand are much greater than those fractions calculated by the Global Warming Potentials, which highlight the importance of CH4 emissions for the case of China and indicate the essential effect of CH4 emissions on global climate change. To understand the full context to achieve GHG emission mitigation, this study provides a new insight to address China's GHG emissions status and hidden emission information induced by the final demand to the related policy-makers. [ABSTRACT FROM AUTHOR]