Firms' global value chain participation and its environmental performance: a review of the empirical literature

Finn Semrau

Chapter 8 in Handbook on Innovation, Society and the Environment, 2023, pp 125-139 from Edward Elgar Publishing

Abstract: Global diffusion of previously developed clean and energy-efficient technologies is continuing to define the pace of the international transition to a green economy over the next few years. Empirical firm-level analyses offer a powerful approach to investigating how a firm’s global value-chain participation relates to the adoption of green technologies. In this chapter, I review insights referring to two relatively separated strands of literature. First, the international economics literature provides strong evidence for an environmental-efficiency premium from exports, foreign direct investments and proximity to final consumption. Second, scholars analysing the determinants of environmental innovation adoption go beyond efficiency arguments and cover a diverse set of environmental domains. Results from the latter are ambiguous and crucially depend on the sample under investigation. I conclude the review with the identification of nine key findings and a discussion of possible research gaps.

Keywords: Economics and Finance; Environment; Innovations and Technology; Politics and Public Policy Sociology and Social Policy (search for similar items in EconPapers)
Date: 2023
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