Does the participation in global value chains promote interregional carbon emissions transferring via trade? Evidence from 39 major economies

On the basis of building the models measuring the degree of participation in global value chains (GVCs), this paper establishes an econometric panel data model to investigate the impact of participation in GVCs on the carbon emissions transferring via trade (CTT) in 39 major economies, and it articulates relevant environmental governance policies that potentially achieve emissions reduction targets. Results indicate that, from a global perspective, as the degree of participation in GVCs rises, the CTT would also increase, and a series of tests showed that the robustness of this argument was not interfered with by endogenous issues. The growth of the CTT from the continuous deepening of participation in GVCs could be partially counterbalanced by reductions in emissions through relevant policies such as the increase of energy intensity, the optimization of industrial structure, and the improvement of residents' awareness of emission reduction. Thus, we should discuss emissions reduction obligation assignments from the perspective of participation in GVCs, and relevant measures on emission reduction should also be placed on optimizing the division of participation in GVCs for each country, so as to lessen local economic dependence on energy intensive products. Overall, this paper could provide more comprehensive insight to enhance our understanding of the determinants driving the changes in the CTT in response to global climate change.

Automated summary

This paper investigates the impact of participation in global value chains (GVCs) on carbon emissions transferring via trade (CTT) in 39 major economies through an econometric panel data model. The results suggest that as the degree of participation in GVCs rises, CTT also increases, but can be partially counterbalanced by relevant policies. Overall, this paper provides insights on how policies can mitigate the increase in CTT due to deepening participation in GVCs.