Global Value Chains Participation and Air Pollution: Does Digital Economy Matter?

Based on a panel dataset of 47 countries during 1995–2015, this study investigates the impact of global value chains participation, as measured by position index, on air pollution. The moderating effect of digital economy is also examined. The results show that the increase of global value chains position has a negative impact on air pollution. Heterogeneity analyses show that the increase of forward‐linked production length could mitigate air pollution. The negative impact of global value chains position is reflected in non‐OECD countries, and the impact on CO is stronger than other pollutants. The mechanism analyses show that increased global value chains position mitigates air pollution through industrial structure upgrading and technological progress. The moderating effect analyses reveal that digital economy could strengthen the negative impact, in which digital applications play a key role. Digital economy could also strengthen the path of global value chains position affecting air pollution through industrial structure and technological progress. The results reveal that global value chains position should be improved to promote air pollution control, and different countries should implement differentiated strategies. In particular, it is of great significance for pollution control to promote the transformation and integration of digital achievements with digital applications as the breakthrough.