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Finding environmentally critical transmission sectors, transactions, and paths in global supply chain networks

Tesshu Hanaka, Shigemi Kagawa, Hirotaka Ono and Keiichiro Kanemoto

Energy Economics, 2017, vol. 68, issue C, 44-52

Abstract: In this article, we develop an economic network analysis to find environmentally critical transmission sectors, transactions and paths in global supply chain networks. The edge betweenness centrality in the global supply chain networks is newly formulated and a relationship between edge betweenness centrality and vertex betweenness centrality is further provided. The empirical analysis based on the world input-output database covering 35 industrial sectors and 41 countries and regions in 2008 shows that specifically, China's Electrical and Optical Equipment sector, which has a higher edge and vertex betweenness centrality, is the most critical sector in global supply chain networks in terms of spreading CO2 emissions along its supply chain paths. We suggest greener supply chain engagement centered around the China's Electrical and Optical Equipment sector and other key sectors identified in this study.

Keywords: Network analysis; Edge betweenness centrality; Vertex betweenness centrality; World input-output database; Global supply chain networks; CO2 (search for similar items in EconPapers)
JEL-codes: C02 Q43 Q56 Q57 R15 P18 (search for similar items in EconPapers)
Date: 2017
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