Skip Navigation Links
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn


Value Chain-Based Quantification of Embodied Flows of Global Urea Fertilizer: An Environment-Economy Nexus Analysis

Journal of Environmental Accounting and Management 14(3) (2026) 529--546 | DOI:10.5890/JEAM.2026.09.011

Muhammad Yasin Gill$^1$, Jinpu Chen$^{2,1}$, Shazia Qadeer$^3$, Ying Fan$^4$, Xiao Li$^1$, Tariq Ali$^5$, Yihong Liu$^{1}$, Xiaohua Xia$^{6}$, Zhi Li$^{1}$

$^{1}$ Laboratory of Systems Ecology and Sustainability Science, School of Mechanics and Engineering Science, Peking University, Beijing, 100871, China

$^{2}$ Institute for Advanced Study in Nuclear Energy & Safety, College of Physics and Optoelectronic Engineering, Shenzhen University, Shenzhen, 518060, China

$^{3}$ Federal Urdu University of Arts, Science & Technology, Islamabad, 75300, Pakistan

$^{4}$ State Key Laboratory of Urban and Regional Ecology, Research Center for Eco-Environmental Science, Chinese Academy of Sciences, Beijing, 100085, China

$^{5}$ School of Economics and Management, Jiangxi Agricultural University, Nanchang, 330045, China

$^{6}$ School of Applied Economics, Renmin University of China, Beijing, 100872, China

Download Full Text PDF

 

Abstract

Given the projected rise in food requirements for the growing world population, urea fertilizer remains essential for sustaining large-scale food production, despite its significant environmental impacts, including greenhouse gas emissions and water contamination. We develop an updated value chain-based Input-Output Analysis (IOA) and use the FAO and Eora data to quantify the local utilization and global trade of urea fertilizer within the supply chain, assessing fractions for environmental impacts and market trends to inform agricultural practices. The IOA framework explores global urea trade, embodied intensities, value-added, production, and supply chain dynamics, identifying sustainable practices and policy opportunities. Our findings indicate significant discrepancies in embodied intensities and the consumption of chemical fractions across world economies, which lead to environmental issues such as soil depletion and greenhouse gas emissions. Total embodied urea fertilizer consumption is estimated at 142.38 million tons per year, substantially exceeding actual usage, indicating inefficiencies and potential areas for implementing sustainable practices. Key agricultural countries, including India, exhibit trade dependencies that render their agricultural sectors susceptible to geopolitical risks. This work supports future efforts to mitigate environmental impacts and improve sustainability in agriculture.

Acknowledgments

This work is supported by the National Natural Science Foundation of China (grant nos 72273143, Recipient: Xiaohua Xia).

References

  1. [1]  Zhang, X., Davidson, E.A., Mauzerall, D.L., Searchinger, T.D., Dumas, P., and Shen, Y. (2015), Managing nitrogen for sustainable development, Nature, 528(7580), 51-59.
  2. [2]  Jia, S., Zhang, Y., Li, X., Wang, H., and Chen, Z. (2022), Soil chemical properties depending on fertilization and management in China: A meta-analysis, Agronomy, 12(10), 2501.
  3. [3]  Erisman, J.W., Sutton, M.A., Galloway, J.N., Klimont, Z., and Winiwarter, W. (2015), Nitrogen: Too much of a vital resource science brief, WWF Netherlands.
  4. [4]  Schulte-Uebbing, L.F., Beusen, A.H.W., Bouwman, A.F., and De Vries, W. (2022), From planetary to regional boundaries for agricultural nitrogen pollution, Nature, 610(7932), 507-512.
  5. [5]  Tian, H., Xu, R., Canadell, J.G., Thompson, R.L., Winiwarter, W., Suntharalingam, P., Yao, Y., and others (2020), A comprehensive quantification of global nitrous oxide sources and sinks, Nature, 586(7828), 248-256.
  6. [6]  Ouikhalfan, M., Lakbita, O., Delhali, A., Assen, A.H., and Belmabkhout, Y. (2022), Toward net-zero emission fertilizers industry: Greenhouse gas emission analyses and decarbonization solutions, Energy & Fuels, 36(8), 4198-4223.
  7. [7]  Davis, K.F., Chhatre, A., Rao, N.D., Singh, D., Ghosh-Jerath, S., Mridul, A., and DeFries, R. (2019), Assessing the sustainability of post-Green Revolution cereals in India, Proceedings of the National Academy of Sciences, 116(50), 25034-25041.
  8. [8]  Desa, U.N. (2019), United Nations Department of Economic and Social Affairs, Population Division, World Population Prospects.
  9. [9]  Glibert, P.M., Harrison, J., Heil, C., and Seitzinger, S. (2006), Escalating worldwide use of urea – a global change contributing to coastal eutrophication, Biogeochemistry, 77, 441-463.
  10. [10]  Baumann, H. and Tillman, A.M. (2004), The Hitch Hiker’s Guide to LCA: An Orientation in Life Cycle Assessment Methodology and Application, Studentlitteratur, Lund.
  11. [11]  Guinée, J.B. (2002), Handbook on Life Cycle Assessment: Operational Guide to the ISO Standards, Vol. 7, Springer Science & Business Media, Dordrecht.
  12. [12]  Guardiola Márquez, C.E., Santos Ramírez, M.T., Segura Jiménez, M.E., Figueroa Montes, M.L., and Jacobo Velázquez, D.A. (2022), Fighting obesity related micronutrient deficiencies through biofortification of agri-food crops with sustainable fertilization practices, Plants, 11(24), 3477.
  13. [13]  Tabe Ojong, M.P.J. (2024), Context matters: Oil palm production and women’s dietary diversity in the tropical forest of Cameroon, Journal of Agricultural Economics, 75(1), 323-340.
  14. [14]  UNICEF (2023), The State of Food Security and Nutrition in the World 2023: Urbanization, Agrifood Systems, Transformation and Healthy Diets Across the Rural–Urban Continuum, UNICEF, New York.
  15. [15]  Fernández, L. (2022), Global fertilizer market size in 2020 and 2021, with a forecast for 2030, Monthly.
  16. [16]  Chand, R. (2022), Agricultural challenges and policies for the 21st century, NABARD Research and Policy Series, No. 2, 36 pp., Mumbai.
  17. [17]  Randive, K., Raut, T., and Jawadand, S. (2021), An overview of the global fertilizer trends and India’s position in 2020, Mineral Economics, 34, 1-14.
  18. [18]  Chen, H., Wang, E., Wang, N., and Song, T. (2023), Research on embodied carbon transfer measurement and carbon compensation among regions in China, International Journal of Environmental Research and Public Health, 20(3), 2761.
  19. [19]  Beylot, A., Corrado, S., and Sala, S. (2020), Environmental impacts of European trade: Interpreting results of process-based LCA and environmentally extended input–output analysis towards hotspot identification, International Journal of Life Cycle Assessment, 25, 2432-2450.
  20. [20]  Igos, E., Benetto, E., Meyer, R., Baustert, P., and Othoniel, B. (2019), How to treat uncertainties in life cycle assessment studies, International Journal of Life Cycle Assessment, 24, 794-807.
  21. [21]  Chen, G.Q. and Chen, B. (2009), Extended-exergy analysis of the Chinese society, Energy, 34(9), 1127-1144.
  22. [22]  Han, J., Tan, Z., Chen, M., Zhao, L., Yang, L., and Chen, S. (2022), Carbon footprint research based on input-output model – a global scientometric visualization analysis, International Journal of Environmental Research and Public Health, 19(18), 11343.
  23. [23]  Wiedmann, T. and Lenzen, M. (2018), Environmental and social footprints of international trade, Nature Geoscience, 11(5), 314-321.
  24. [24]  Andrew, R. and Forgie, V. (2008), A three-perspective view of greenhouse gas emission responsibilities in New Zealand, Ecological Economics, 68(1-2), 194-204.
  25. [25]  Tukker, A. and Dietzenbacher, E. (2013), Global multiregional input–output frameworks: An introduction and outlook, Economic Systems Research, 25(1), 1-19.
  26. [26]  Chen, X., Shuai, C., Zhang, Y., and Wu, Y. (2020), Decomposition of energy consumption and its decoupling with economic growth in the global agricultural industry, Environmental Impact Assessment Review, 81, 106364.
  27. [27]  Chen, G.Q. and Wu, X.F. (2017), Energy overview for globalized world economy: Source, supply chain and sink, Renewable and Sustainable Energy Reviews, 69, 735-749.
  28. [28]  Guinée, J. (2002), Handbook on Life Cycle Assessment: Operational Guide to the ISO Standards, Kluwer Academic Publishers, Dordrecht.
  29. [29]  Steen-Olsen, K., Weinzettel, J., Cranston, G., Ercin, E., Galli, A., Milà i Canals, L., Tukker, A., and Hertwich, E. (2016), Accounting for value added embodied in trade and consumption: An intercomparison of global multiregional input-output databases, Economic Systems Research, 28(1), 78-94.
  30. [30]  Chen, G.Q. and Han, M.Y. (2015), Virtual land use change in China 2002–2010: Internal transition and trade imbalance, Land Use Policy, 47, 55-65.
  31. [31]  Chen, G.Q., Guo, S., Shao, L., Li, J.S., and Chen, Z.M. (2013), Three-scale input–output modeling for urban economy: Carbon emission by Beijing 2007, Communications in Nonlinear Science and Numerical Simulation, 18(9), 2493-2506.
  32. [32]  Chen, S. and Chen, B. (2015), Urban energy consumption: Different insights from energy flow analysis, input-output analysis, and ecological network analysis, Applied Energy, 138, 99-107.
  33. [33]  Li, J.S., Xia, X.H., Chen, G.Q., Alsaedi, A., and Hayat, T. (2016), Optimal embodied energy abatement strategy for Beijing economy: Based on a three-scale input-output analysis, Renewable and Sustainable Energy Reviews, 53, 1602-1610.
  34. [34]  Wu, X.F. and Chen, G.Q. (2017), Energy use by the Chinese economy: A systems cross-scale input-output analysis, Energy Policy, 108, 81-90.
  35. [35]  Xu, W., Xie, Y., Cai, Y., Ji, L., Wang, B., and Yang, Z. (2021), Environmentally-extended input-output and ecological network analysis for Energy-Water-CO2 metabolic system in China, Science of the Total Environment, 758, 143931.
  36. [36]  Guan, D., Su, X., Zhang, Q., Peters, G.P., Liu, Z., Lei, Y., and Hubacek, K. (2018), Structural decline in China’s CO2 emissions through transitions in industry and energy systems, Nature Geoscience, 11(8), 551-555.
  37. [37]  Mi, Z., Liu, J., Guan, D., Zhang, W., Meng, J., Shan, Y., and Liu, Z. (2020), Economic development and converging household carbon footprints in China, Nature Sustainability, 3(7), 529-537.
  38. [38]  Leontief, W.W. (1936), Quantitative input and output relations in the economic systems of the United States, The Review of Economic Statistics, 18(3), 105-125.
  39. [39]  Miller, R.E. and Blair, P.D. (2009), Input-Output Analysis: Foundations and Extensions, Cambridge University Press, Cambridge.
  40. [40]  Wright, D.J. (1974), Good and services: An input-output analysis, Energy Policy, 2(4), 307-315.
  41. [41]  Chapman, P.F. (1974), Energy costs: A review of methods, Energy Policy, 2(2), 91-103.
  42. [42]  Born, P. (1996), Input-output analysis: Input of energy, CO2, and work to produce goods, Journal of Policy Modeling, 18(2), 217-221.
  43. [43]  Chen, G.Q., Guo, S., Shao, L., Li, J.S., and Chen, Z.M. (2013), Three-scale input–output modeling for urban economy: Carbon emission by Beijing 2007, Communications in Nonlinear Science and Numerical Simulation, 18(9), 2493-2506.
  44. [44]  Chen, G.Q. and Han, M.Y. (2015), Virtual land use change in China 2002–2010: Internal transition and trade imbalance, Land Use Policy, 47, 55-65.
  45. [45]  Li, J.S., Xia, X.H., Chen, G.Q., Alsaedi, A., and Hayat, T. (2016), Optimal embodied energy abatement strategy for Beijing economy: Based on a three-scale input-output analysis, Renewable and Sustainable Energy Reviews, 53, 1602-1610.
  46. [46]  Lenzen, M., Moran, D., Kanemoto, K., and Geschke, A. (2013), Building Eora: A global multi-region input-output database at high country and sector resolution, Economic Systems Research, 25(1), 20-49.
  47. [47]  Lenzen, M., Kanemoto, K., Moran, D., and Geschke, A. (2012), Mapping the structure of the world economy, Environmental Science & Technology, 46(15), 8374-8381.
  48. [48]  World Bank (2022), Fertilizer consumption (% of cropland), World Bank. https://data.worldbank.org/indicator/ AG.CON.FERT.ZS
  49. [49]  FAOSTAT (2011), Food and Agriculture Organization of the United Nations, FAO, Rome.
  50. [50]  Chen, Z.M., Chen, G.Q., Zhou, J.B., Jiang, M.M., and Chen, B. (2010), Ecological input–output modeling for embodied resources and emissions in the Chinese economy 2005, Communications in Nonlinear Science and Numerical Simulation, 15(7), 1942-1965.
  51. [51]  Chen, W., Lei, Y., Wu, S., and Li, L. (2019), Opportunities for low-carbon socioeconomic transition during the revitalization of Northeast China: Insights from Heilongjiang province, Science of the Total Environment, 683, 380-388.
  52. [52]  Chen, G.Q., Wu, X.D., Guo, J., Meng, J., and Li, C. (2019), Global overview for energy use of the world economy: Household-consumption-based accounting based on the world input-output database (WIOD), Energy Economics, 81, 835-847.
  53. [53]  Sun, L., Zhou, W., Zhu, X., and Xia, X. (2023), Deforestation embodied in global trade: Integrating environmental extended input-output method and complex network analysis, Journal of Environmental Management, 325, 116479.
  54. [54]  Da F. Costa, L., Rodrigues, F.A., Travieso, G., and Villas Boas, P.R. (2007), Characterization of complex networks: A survey of measurements, Advances in Physics, 56(1), 167-242.
  55. [55]  Wu, J., Jia, Y., Cheng, M., and Xia, X. (2022), A complex network perspective on embodiment of air pollutants from global oil refining industry, Science of the Total Environment, 824, 153740.
  56. [56]  Zhu, A., Guo, Z., Xie, W., Tariq, A., and Liu, Y. (2022), Research on embodied nitrogen, phosphorus and potassium in China’s agricultural trade from the perspective of global value chain, Journal of Natural Resources, 37(1), 221-232.
  57. [57]  Davis, K.F., Downs, S., and Gephart, J.A. (2021), Towards food supply chain resilience to environmental shocks, Nature Food, 2(1), 54-65.
  58. [58]  Minten, H., Hausweiler, J., Probst, B., Reinert, C., Meys, R., and Bardow, A. (2025), Embodied emissions of chemicals within the EU Carbon Border Adjustment Mechanism, Nature Sustainability, 8, 1-10.
  59. [59]  Bullard III, C.W. and Herendeen, R.A. (1975), The energy cost of goods and services, Energy Policy, 3(4), 268-278.
  60. [60]  Chen, B., Wu, X., Tan, Y., Zhou, X., and Liu, Z. (2018), Global energy flows embodied in international trade: A combination of environmentally extended input–output analysis and complex network analysis, Applied Energy, 210, 98-107.
  61. [61]  Masjedi, S.K., Kazemi, A., Moeinnadini, M., Khaki, E., and Olsen, S.I. (2024), Urea production: An absolute environmental sustainability assessment, Science of the Total Environment, 908, 168225.
  62. [62]  Ryberg, M.W., Bjerre, T.K., Nielsen, P.H., and Hauschild, M. (2021), Absolute environmental sustainability assessment of a Danish utility company relative to the Planetary Boundaries, Journal of Industrial Ecology, 25(3), 765-777.