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Spatial Effects of Participation in Global Value Chains on CO2 Emissions: A Global Spillover Perspective

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  • Shujin Zhu
  • Yiding Tang
  • Xingzhi Qiao
  • Wanhai You
  • Cheng Peng

Abstract

Using balanced panel data of 62 countries (regions) from 1995 to 2011, we explore the linkage between a country’s participation in global value chains (GVC) and its carbon emissions using spatial panel econometric models. We find: First, positive spatial dependency does exist between countries. Second, forward and backward GVC participation has different spatial spillover effects, with the latter causing most of the spillovers. Third, regarding industry heterogeneity, the manufacturing sector generates a stronger spatial spillover than the service sector. High-tech manufacturing sub-industries show stronger spillovers, compared to low-tech sub-industries. Finally, we propose policy suggestions for international relations and environmental governance.

Suggested Citation

  • Shujin Zhu & Yiding Tang & Xingzhi Qiao & Wanhai You & Cheng Peng, 2022. "Spatial Effects of Participation in Global Value Chains on CO2 Emissions: A Global Spillover Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(3), pages 776-789, February.
    • Handle: RePEc:mes:emfitr:v:58:y:2022:i:3:p:776-789
    DOI: 10.1080/1540496X.2021.1911801
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    Cited by:

    1. Tang, Yiding & Zhu, Shujin & Luo, Yan & Duan, Wenjing, 2022. "Input servitization, global value chain, and carbon mitigation: An input-output perspective of global manufacturing industry," Economic Modelling, Elsevier, vol. 117(C).
    2. Wang, Jing & Rickman, Dan S. & Yu, Yihua, 2022. "Dynamics between global value chain participation, CO2 emissions, and economic growth: Evidence from a panel vector autoregression model," Energy Economics, Elsevier, vol. 109(C).
    3. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Pan, An, 2023. "Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises," Economic Modelling, Elsevier, vol. 127(C).
    4. Guimei Zhang & Guangyue Liu, 2023. "Does Global Value Chain Embedment Contribute to Environmental Pollution in Emerging Economies?," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    5. Abban, Olivier Joseph & Xing, Yao Hong & Nuţă, Alina Cristina & Nuţă, Florian Marcel & Borah, Prasad Siba & Ofori, Charles & Jing, Yao Jing, 2023. "Policies for carbon-zero targets: Examining the spillover effects of renewable energy and patent applications on environmental quality in Europe," Energy Economics, Elsevier, vol. 126(C).

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