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Ecologically unequal exchange and uneven development patterns along global value chains

Author

Listed:
  • Jeffrey Althouse
  • Louison Cahen-Fourot
  • Bruno Carballa-Smichowski
  • Cédric Durand

    (UNIGE - Université de Genève = University of Geneva, ACT - Analyse des Crises et Transitions - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - Université Sorbonne Paris Nord)

  • Steven Knauss

Abstract

The ecologically unequal exchange (EUE) literature has provided ample empirical evidence for asymmetric transfer of material and energy resources from low-income to high-income countries. However, research has not been able to clearly specify the causal mechanisms driving these processes. This paper relates participation in global value chains (GVCs) to development patterns and ecologically unequal exchange. We conduct a principal components analysis and a clustering analysis along six dimensions (GVC participation, GVC value capture, investment, socioeconomic development, domestic environmental impact and international environmental balance) for 133 countries between 1995 and 2015. We find three social, ecological, productive development and GVC insertion patterns: “curse of GVC marginalization”, “ecologically perverse upgrading” and “reproduction of the core”. While our results confirm the asymmetry in ecological degradation between high-income and low-income economies shown by EUE, they support the existence of alternative mechanisms to account for it. We argue that environmental asymmetries are driven in large part by differences in how countries articulate within GVCs, and therefore cannot be ascribed to relations of ecologically unequal exchange, alone. Countries with a higher capacity to capture value from GVC participation (“reproduction of the core”) are able to displace environmental impacts to countries facing a trade-off between the positive socio-economic impacts of rapid GVC integration and ecological degradation (“ecologically perverse upgrading”). GVC marginalization, in turn, constitutes a barrier to socio-economic benefits and to imported ecological degradation. However, the lack of diffusion of more ecologically-efficient processes through GVCs has a negative impact on domestic ecological degradation for countries of the “curse of GVC marginalization” group.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jeffrey Althouse & Louison Cahen-Fourot & Bruno Carballa-Smichowski & Cédric Durand & Steven Knauss, 2023. "Ecologically unequal exchange and uneven development patterns along global value chains," Post-Print hal-04874937, HAL.
  • Handle: RePEc:hal:journl:hal-04874937
    DOI: 10.1016/j.worlddev.2023.106308
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    Cited by:

    1. Smith, Matthew & Christopoulos, Dimitris, 2025. "GVC participation and carbon emissions – A network analysis," Ecological Economics, Elsevier, vol. 228(C).

    More about this item

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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