Indirect energy subsidies embodied in the export of China: An output-input approach

China´s indirect energy subsidies which transfer to foreign consumer are huge. In this paper, we explore the input-output analysis to estimate the embodied energy of 33 non-energy sectors and use price-gap method to calculate energy subsidies in export. Results show that China is a major exporter of energy, the increasing exports of high energy-intensive goods caused 230 million tons of standard coal, accounting for 10% of China´s total energy consumption in 2007, transfer to foreigners, and, China´s indirect energy subsidies in exports was up to 32.47 billion Yuan. We suggest that the energy price reform and the phasing-out of fossil-fuel subsidies should be considered in the policy design and reallocate more to support renewable energy industry, which could improve the terms of trade and favoring the environment of china.