URBAN TRANSFORMATION AND CARBON FOOTPRINT OF MEGA-CITIES IN JAPAN AND CHINA Shinji Kaneko Graduate School for International Development and Cooperation, Hiroshima University kshinji@hiroshima-u.ac.jp Abstract: Cities are the engine of economic development of a nation and this is particularly true for the mega-cities of Asia where rapid economic growth has been taking place. To maintain the momentum of sustained economic growth, cities are transforming its structure of economic activities, the efficiency of production and the patterns of consumption. As a consequence of this economic transformation, the structure of energy and material supply and demand has been changing over time with dramatic increase in the external dependency of supply. Being frontrunners, this phenomenon takes place in a greater intensity in mega-cities compared to smaller cities, although cities are too diversified to generalize such transformation process. To explain and analyze this transformation process and the carbon footprint implications, this study focuses on two cases; it looks into Tokyo in 1990s as a case of city with matured economy and that of Beijing and Shanghai in late 1990s and early 2000s as cases of the cities with rapid economic development. This study utilizes regional input-output analysis techniques to estimate embodied energy and carbon emissions in material goods and services in these three mega-cities that elucidates the relation between indirect and direct energy consumption and carbon dioxide emissions in different stages of economic development. Our results show that the responsibility of a city for energy use and carbon emissions is greatly underestimated if only direct energy use or direct carbon emission are considered. The results also show that the increase in the extent of economic dependency on outside economy leads to decrease in direct energy consumption and direct carbon emissions but this results into an increase in the indirect energy consumption and indirect carbon emissions. This transformation is closely associated with the industrial structure changes from manufacturing to service sector and the pattern of consumption in a city. Furthermore, in the city with matured economy such as Tokyo, a city looks much more efficient when viewed in terms of per capita direct carbon emissions compared to the national average due to dense and well established infrastructures in the city, however if we consider both direct and indirect carbon emission per capita, this is not the case. Based on these sample empirical evidences, the paper tries to derive common patterns of cities regarding the relationship between urban transformation and the carbon footprint.