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Does GVC embedding reduce carbon emissions? Empirical evidence from 218 Chinese cities

Guangqin Li and Xi Zhang

Structural Change and Economic Dynamics, 2023, vol. 66, issue C, 253-263

Abstract: To achieve its carbon peak and neutrality plan, whether China's global value chain (GVC) embedding has a carbon emission reduction effect is a question worthy of attention. This paper measures the GVC embedding degree of 218 Chinese cities from 2000 to 2016, and constructs a panel data model to investigate the impact and its mechanism of GVC embedding on carbon emission intensity. This study finds that there is a significant U-shaped relationship between GVC embedding and carbon emission intensity, and a series of robustness test results support this conclusion. Export scale, energy consumption structure and technological innovation play a mediation role in the impact path of GVC embedding on carbon emission intensity. Based on this, this paper proposes that while participating in GVC, China needs to actively utilize the emission reduction effect of GVC, promote the transformation of export mode to high quality, reduce the use and dependence on high-carbon resources such as coal, and encourage companies to innovate.

Keywords: GVC embedding; Carbon emission intensity; U-shaped relationship; Mediation effect (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:66:y:2023:i:c:p:253-263

DOI: 10.1016/j.strueco.2023.05.005

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