The Impact of Global Value Chain Embedment on Energy Conservation and Emissions Reduction:Theory and Empirical Evidence

Bai Junhong and Yu Xuewei ()
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Bai Junhong: School of Business, Nanjing Normal University Nanjing, China
Yu Xuewei: School of Economics and Management, Southeast University Nanjing, China

China Finance and Economic Review, 2024, vol. 13, issue 2, 46-66

Abstract: An in-depth investigation into the effect of embedment in global value chain (GVC) on energy conservation and emissions reduction is of great significance for scientifically assessing the environmental impact of GVC participation, and promoting high-quality development in China. This paper incorporates GVC embedment, energy consumption and carbon emissions into the same analysis framework for the first time. Based on the WIOD database, this paper theoretically and empirically examines the impact and mechanism of global value chain embeddedness on carbon emission reduction from two dimensions: energy consumption intensity and energy consumption structure. The study found that GVC embedment significantly reduced the industry’s carbon emission intensity; developing economies’ embedment in GVC helped reduce their carbon emission intensity, while the effect was not obvious in developed economies. GVC embedment had a significant inhibitory effect on the carbon emissions in both upstream and downstream industries, but not conducive to carbon reduction of low-tech manufacturing. The mechanism test shows that the GVC embedment not only exhibits the dual effects of energy conservation and emissions reduction, but also has a significant impact on carbon emissions by reducing the energy consumption intensity and improving the energy consumption structure.

Keywords: global value chain; energy conservation and emissions reduction; multidimensional fixed effects model (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:cferev:v:13:y:2024:i:2:p:46-66:n:1003

DOI: 10.1515/cfer-2024-0009

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