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The raw material basis of global value chains: allocating environmental responsibility based on value generation

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  • Pablo Piñero
  • Martin Bruckner
  • Hanspeter Wieland
  • Eva Pongrácz
  • Stefan Giljum

Abstract

A new approach to allocate environmental responsibility, the ‘value added-based responsibility’ allocation, is presented in this article. This metric allocates total environmental pressures occurring along an international supply chain to the participating sectors and countries according to the share of value added they generate within that specific supply chain. We show that – due to their position in global value chains – certain sectors (e.g. services) and countries (e.g. Germany) receive significantly greater responsibility compared to other allocation approaches. This adds a new perspective to the discussions concerning a fair distribution of mitigation costs among nations, companies and consumers.

Suggested Citation

  • Pablo Piñero & Martin Bruckner & Hanspeter Wieland & Eva Pongrácz & Stefan Giljum, 2019. "The raw material basis of global value chains: allocating environmental responsibility based on value generation," Economic Systems Research, Taylor & Francis Journals, vol. 31(2), pages 206-227, April.
    • Handle: RePEc:taf:ecsysr:v:31:y:2019:i:2:p:206-227
    DOI: 10.1080/09535314.2018.1536038
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    Cited by:

    1. Airebule, Palizha & Cheng, Haitao & Ishikawa, Jota, 2023. "Assessing carbon emissions embodied in international trade based on shared responsibility," Journal of the Japanese and International Economies, Elsevier, vol. 68(C).
    2. Althouse, Jeffrey & Cahen-Fourot, Louison & Carballa-Smichowski, Bruno & Durand, Cédric & Knauss, Steven, 2023. "Ecologically unequal exchange and uneven development patterns along global value chains," World Development, Elsevier, vol. 170(C).
    3. Wang, Jiayu & Ji, Chang-Jing & Liu, Yu & Shan, Yuli & Hubacek, Klaus & Wei, Yi-Ming & Wang, Ke, 2024. "Re-investigating the shared responsibility for trade-embodied carbon emissions," Ecological Economics, Elsevier, vol. 220(C).
    4. Zhang, Haoran & Li, Ruixiong & Cai, Xingrui & Zheng, Chaoyue & Liu, Laibao & Liu, Maodian & Zhang, Qianru & Lin, Huiming & Chen, Long & Wang, Xuejun, 2022. "Do electricity flows hamper regional economic–environmental equity?," Applied Energy, Elsevier, vol. 326(C).
    5. Dorninger, Christian & Hornborg, Alf & Abson, David J. & von Wehrden, Henrik & Schaffartzik, Anke & Giljum, Stefan & Engler, John-Oliver & Feller, Robert L. & Hubacek, Klaus & Wieland, Hanspeter, 2021. "Global patterns of ecologically unequal exchange: Implications for sustainability in the 21st century," Ecological Economics, Elsevier, vol. 179(C).
    6. Alonso-Fernández, Pablo & Regueiro-Ferreira, Rosa María, 2022. "Extractivism, ecologically unequal exchange and environmental impact in South America: A study using Material Flow Analysis (1990–2017)," Ecological Economics, Elsevier, vol. 194(C).
    7. Viktoras Kulionis & Andreas Froemelt & Stephan Pfister, 2024. "Multiscale Orientation Values for Biodiversity, Climate and Water: A Scientific Input for Science- Based Targets," Papers 2403.11680, arXiv.org.
    8. Ivanova, Diana & Wieland, Hanspeter, 2023. "Tracing carbon footprints to intermediate industries in the United Kingdom," Ecological Economics, Elsevier, vol. 214(C).
    9. Magacho, Guilherme & Espagne, Etienne & Godin, Antoine & Mantes, Achilleas & Yilmaz, Devrim, 2023. "Macroeconomic exposure of developing economies to low-carbon transition," World Development, Elsevier, vol. 167(C).
    10. Cahen-Fourot, Louison & Campiglio, Emanuele & Godin, Antoine & Kemp-Benedict, Eric & Trsek, Stefan, 2021. "Capital stranding cascades: The impact of decarbonisation on productive asset utilisation," Energy Economics, Elsevier, vol. 103(C).
    11. Zengkai Zhang & Jiaoyan Li & Dabo Guan, 2023. "Value chain carbon footprints of Chinese listed companies," Nature Communications, Nature, vol. 14(1), pages 1-9, December.
    12. Ji, Xi & Liu, Yifang & Wu, Guowei & Su, Pinyi & Ye, Zhen & Feng, Kuishuang, 2022. "Global value chain participation and trade-induced energy inequality," Energy Economics, Elsevier, vol. 112(C).
    13. Xu, Xueliu & Wang, Qian & Ran, Chenyang & Mu, Mingjie, 2021. "Is burden responsibility more effective? A value-added method for tracing worldwide carbon emissions," Ecological Economics, Elsevier, vol. 181(C).
    14. Wei, Long & Li, Wenjing & Jin, Zhida, 2024. "Global value chains participation and trade-induced carbon inequality: A comparative analysis of developed and developing economies," Ecological Economics, Elsevier, vol. 220(C).
    15. Pablo Alonso-Fernández & Rosa María Regueiro-Ferreira, 2021. "An Approximation to the Environmental Impact of Economic Growth Using the Material Flow Analysis: Differences between Production and Consumption Methods, Applied to China, United Kingdom and USA (1990," Sustainability, MDPI, vol. 13(10), pages 1-21, May.
    16. Althouse, Jeffrey & Guarini, Giulio & Gabriel Porcile, Jose, 2020. "Ecological macroeconomics in the open economy: Sustainability, unequal exchange and policy coordination in a center-periphery model," Ecological Economics, Elsevier, vol. 172(C).
    17. Sun, Zhongxiao & Behrens, Paul & Tukker, Arnold & Bruckner, Martin & Scherer, Laura, 2022. "Shared and environmentally just responsibility for global biodiversity loss," Ecological Economics, Elsevier, vol. 194(C).

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