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The threshold effect of manufacturing Servitization on carbon emission: An empirical analysis based on multinational panel data

Yi Zong and Guoda Gu

Structural Change and Economic Dynamics, 2022, vol. 60, issue C, 353-364

Abstract: There has been heated debate by scholars in different fields over the past years regarding the issue of how to slow global warming. To reduce carbon emissions without reducing the satisfaction of social needs, environmental economists try to reduce environmental costs by improving the structure of production. Manufacturing servitization improves the production structure by introducing service elements into the manufacturing industry, so it is increasingly proposed as a solution to reduce carbon emissions. By using the World Input-Output Database (WIOD), this article calculates the degree of manufacturing servitization in 42 countries from 2000–2014 by the trade in value added (TiVA) method. We first empirically verify the carbon emission reduction effect of manufacturing servitization through multinational panel data, and then further examine the environmental impact of manufacturing servitization on heterogeneous economies from different perspectives using the panel threshold regression model, so as to provide a reference for the realistic development of economies with different economic characteristics or developmental stages.

Keywords: Carbon emission; Manufacturing servitization; Threshold Effect (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:60:y:2022:i:c:p:353-364

DOI: 10.1016/j.strueco.2021.12.007

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Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

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