Bridging Production and Consumption Perspectives in Global Carbon Emission Inequality: A Decomposition Analysis of Regional Convergence

Defined by uneven responsibilities, burdens, and resource distribution in the pursuit of carbon neutrality, carbon emission inequality is simultaneously embedded in global structures of production, consumption, and trade that produce pronounced disparities across regions, sectors, and populations. Despite growing attention, existing studies often rely on national-level data or single accounting perspectives, limiting understanding of regional dynamics and long-term structural drivers. This study addresses these gaps by integrating both production-based and consumption-based emission measures within a regional analytical framework. Employing the Theil index and Index Decomposition Analysis (IDA) from 1995 to 2020, the research decomposed emission inequality into emission intensity, economic structure, and per capita value-added effects, enabling a comprehensive assessment of underlying drivers across five major regions: Asia, Europe, North America, Africa, and South America. Findings reveal a marked decline in global emission inequality, with production-based and consumption-based indices decreasing by 64% and 59%, respectively. Consumption-based inequality remained higher due to the carbon embedded in traded goods, highlighting the role of global supply chains in transferring environmental burdens from developed to developing regions. Emission intensity emerged as the most recurrent driver of inequality in Asia, Africa, North America, and globally, while structural factors dominated in Europe, and per capita value-added was most influential in South America. Regional convergence was observed, particularly driven by industrial growth and efficiency improvements in Asia, though disparities persisted in less industrialized regions.