Producer services development and manufacturing carbon intensity: Evidence from an international perspective

Zhida Jin, Zheng Li and Mian Yang

Energy Policy, 2022, vol. 170, issue C

Abstract: Reducing the carbon intensity of manufacturing is pivotal to meeting international carbon reduction targets aimed at mitigating global warming. This paper originally investigates the implications of producer services development (PSD) on the carbon intensity of manufacturing. We first evolved an approach to quantify the indirect role of producer services in reducing the carbon intensity of manufacturing. Empirical tests are then carried out using data from 18 manufacturing sectors in 42 countries from 2000 to 2014. The results demonstrate that domestic PSD reduces the carbon intensity of manufacturing sectors, but this effect is significant only in the sectors with high embedment of producer services, both domestic and foreign producer services. By deeply embedded in manufacturing, the development of producer services improves the energy structure and energy efficiency of the manufacturing sector, thereby reducing its carbon intensity. In addition, among producer services, the development and embedment of the information and communication sector has a more pronounced impact on reducing the carbon intensity of manufacturing. Our findings are informative and insightful for coordinating inter-sector development and implementing climate change mitigation measures.

Keywords: Producer services; Manufacturing; Carbon intensity; Global value chains (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:170:y:2022:i:c:s0301421522004724

DOI: 10.1016/j.enpol.2022.113253

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