Construction Method of Low-carbon Trade Competitiveness Index:Empirical Evidences from China

In order to cope with the impact of low-carbon economy on global competitiveness of China' s industries, a new index which can predict the global industrial competitiveness of various countries in the coming low-carbon era needs to be constructed. Combining the carbon productivity and the trade competitiveness index, the paper constructs a low-carbon trade competitiveness index which reflects both the reduction of carbon emissions and the trade competitiveness. Then, the paper calculates and compares the low-carbon trade competitiveness index and the trade competitiveness index of China between 1995 and2009. The results show that compared with the low-carbon trade competitiveness index, the trade competitiveness index overestimated the international competitiveness of most Chinese industries and underestimated the improving prospects of the international competitiveness of some Chinese industries. Finally, according to the calculations over the carbon productivity, trade competitiveness index and low carbon trade competitiveness index, the paper divides China's 32 industries into6 categories, providing a policy reference for developing strategies to enhance China's international industrial competitiveness in the low-carbon era.