Trade-off analysis between embodied energy exports and employment creation in China

Moving towards sustainable consumption in China must factor in the drivers of production. China's domestic energy demand is affected not only by domestic demand, but also by foreign trade. The accounting of energy embodied in China's international trade has attracted much attention in recent years. In fact, embodied energy imports/exports are a part of the normal pattern of economic phenomena occurring through international trade, with exports of embodied energy contributing significantly to China's economic development. This research suggest that China's net embodied energy exports remained relatively stable before 2002, and then increased dramatically from 73 MTOE in 2002 to 502 MTOE by 2007 with an average annual growth rate of 47.2% over that period. The total employment creation reliant on these exports is 191.3 million people including direct employment of 44.1 million people and indirect employment of 147.2 million people in 2007, and the total employment creation increased quickly between 2002 and 2007, with an average annual growth rate of 9.1%. The share of employment created by exports in China's total employment increased from 16.5% in 1997 to 18.6% in 2002, and a more dramatic increase can be observed in 2007 of 28.1%. The exports-oriented sectors in China are energy-intensive from the perspective of embodied energy consumption, and the energy-intensive exports are located in nearly the same sectors as the labor-intensive exports. China will find it difficult to sustain the trade-off in costs due to unemployment if it wishes to reduce embodied energy exports. China needs to exercise patience and long-term reform to change the current development model because of its large economy and population base.