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

In: Handbook on Innovation, Society and the Environment

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  • Finn Ole Semrau

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.

Suggested Citation

  • Finn Ole Semrau, 2023. "Firms' global value chain participation and its environmental performance: a review of the empirical literature," Chapters, in: Fernando J. Díaz López & Massimiliano Mazzanti & Roberto Zoboli (ed.), Handbook on Innovation, Society and the Environment, chapter 8, pages 125-139, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20889_8
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