Measuring both production-based and consumption-based CO 2 emissions of different countries based on the multi-region input–output model

Therefore, the production process of goods that are traded creates both direct and indirect CO2 emissions, the indirect emissions being those that are embodied in international trade. A country’s CO2 emissions are – according to standard production-based accounting principles – those that result from domestic production, regardless of whether these goods are consumed domestically or exported. This measure does not include CO2 emissions from goods that are produced abroad and are then imported for domestic consumption.