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What contributes to the growth of China’s embodied CO2 emissions? Incorporating the global value chains concept

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  • Zhenguo Wang
  • Yabin Zhang
  • Chun Liao
  • Hongshan Ai
  • Xiangyu Yang

Abstract

Global value chains (GVCs) not only reshape trade patterns but also influence trade-related emissions worldwide. This paper estimates China’s aggregate and industrial embodied CO2 emissions in international fragmentation production networks in 2000–2014, and further adopts the chaining structural decomposition analysis (SDA) incorporating the GVCs concept to identify the effect of production fragmentation on embodied CO2 emissions. In addition, heterogeneities in different trade patterns (i.e. pure domestic, traditional, simple, and complex trades) are also examined. The chaining SDA results show that the increase in GVCs leads to China’s embodied CO2 emissions growth, in which the relocation effect of final products is greater than that of intermediate products. Moreover, China’s embodied CO2 emissions are mainly induced by pure domestic demand, with trade-related activities accounting for less than 30%. Furthermore, the effect of traditional final demand trade activity is outstripping that of those rising from the simple and complex GVCs activities.

Suggested Citation

  • Zhenguo Wang & Yabin Zhang & Chun Liao & Hongshan Ai & Xiangyu Yang, 2022. "What contributes to the growth of China’s embodied CO2 emissions? Incorporating the global value chains concept," Applied Economics, Taylor & Francis Journals, vol. 54(12), pages 1335-1351, March.
    • Handle: RePEc:taf:applec:v:54:y:2022:i:12:p:1335-1351
    DOI: 10.1080/00036846.2021.1976382
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    Cited by:

    1. Wenzheng Liu & Yadong Ning & Shukuan Bai & Boya Zhang, 2023. "The Impact of Trade on Carbon Emissions and Employment from the Perspective of Global Value Chains—A Case Study of Chinese–Japanese–Korean Trade," Energies, MDPI, vol. 16(5), pages 1-23, March.
    2. Xu, Chengzhen & Zhu, Qingyuan & Li, Xingchen & Wu, Liangpeng & Deng, Ping, 2024. "Determinants of global carbon emission and aggregate carbon intensity: A multi-region input−output approach," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 418-435.
    3. Hongwei Zhou & Yawen Kong & Shuguang Liu & Shan Feng, 2022. "Can Global Value Chains Embedment Reduce Carbon Emissions Embodied in Exports?—Empirical Test Based on the Manufacturing Industries," IJERPH, MDPI, vol. 19(24), pages 1-20, December.
    4. Shengyuan Wang & Meixia Pan & Xiaolan Wu, 2023. "Sustainable Development in the Export Trade from a Symbiotic Perspective on Carbon Emissions, Exemplified by the Case of Guangdong, China," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    5. Wang, Lei & Ramsey, Thomas Stephen, 2024. "Digital divide and environmental pressure: A countermeasure on the embodied carbon emissions in FDI," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    6. 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.

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