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This paper quantifies the carbon emissions embodied in the bilateral trade between India from the non-Annex-I country list under the Kyoto Protocol (1997) with two of its biggest trade partners from the Annex-II country list, the USA and the UK, by applying the input–output modelling during the years of 2011 to 2014, to evaluate and analyse the conjecture around the carbon leakage. After the calculation of the embodied carbon in these bilateral exports and imports, the study further inspects the roles of important drivers those are influencing the calculated emission imbalances in trade. This study addresses a high emission-intensive energy consumption pattern of India relative to both the USA and the UK which is confirming the possibility of carbon leakage from Indian commodity production sectors and inducing a huge contribution from these bilateral trades into the global emissions. Finally, this study provides evidence from a spatial decomposition analysis that the differences among the emission-intensity of output between India and its major developed country trade partners create the maximum impact on the implied emission imbalances in the bilateral trades. With the anticipation of increased India–USA and the India–UK bilateral trade, this study proposes suggestion to reduce India's emission intensity of output through fuel switching to the less emission-intensive energy options and relieve the pressure on the global environment. [ABSTRACT FROM AUTHOR]

This paper empirically measures the impact of sectoral energy price differential between trading partners on Indian exports. Using dynamic gravity model, we estimate the response of Indian exports for 11 energy-intensive sectors to sectoral-level energy price asymmetry. We observe the absence of the contemporaneous effect of energy price differential on Indian exports, but the presence of persistence effects. We find that a 10% increase in relative energy prices negatively affects Indian sectoral exports by about 1% ranging from 0.9% for chemicals to 1.4% for non-ferrous metals, revealing a larger impact for energy-intensive sectors. These small effects imply that the concerns of carbon leakage are largely overplayed. [ABSTRACT FROM AUTHOR]

This paper explores the features of accounting for the national carbon emission inventory under four different system boundaries, including the presently operational territorial production-based accounting (PBA) practised by the UNFCCC. Using a recently published input-output table with the base year for 2013–2014, the study calculates India's 'Nationally Determined Contribution (NDC)' to the mitigation of carbon emissions using production-based, consumption-based, sharing-based and equity-based accounting. The study finds India as a net importer of carbon emissions, especially for its high emission-intensive capital and energy goods import such that the country is bearing the minimum burden of emission reduction responsibility. However, the study intends to analyse this burden of responsibility in terms of the criteria of justice and effectiveness and addresses the future policy priorities for India to become a net exporter of industrial goods. We recommend India for supporting and implementing an alternative system boundary of emission inventory accounting which would be more consistent with the provisions of 'equity' subscribed under the UNFCCC while at the same time, helpful for achieving the climate goals by appropriately trace and track the sources of 'carbon leakage'. • We explore accounting features of the national carbon emission inventory in India. • India is a net importer of C O 2 emissions with less burden of emission responsibility. • Besides accounting of the emission inventory, the concept of 'emission responsibility' accommodates the criterion of 'justice' and 'effectiveness'. • The existing system boundary of emission inventory accounting could be an obstacle to achieve carbon-neutrality for India. • India must implement alternative system boundary of emission inventory accounting. [ABSTRACT FROM AUTHOR]