1. Tracing carbon emissions and intensity in relational global value chain activities.
- Author
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Sun, Kejuan, Ye, Jiabai, Yue, Youfu, and Xiao, Nianqi
- Subjects
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GLOBAL value chains , *CARBON emissions , *VALUE chains , *GREENHOUSE gas mitigation ,ECONOMIC conditions in China - Abstract
Existing studies on emission accounting in global value chains (GVCs) have not focused on the relational nature of GVC activities manifested as the interaction of intermediate goods between enterprises. This paper proposes a relational GVC emissions accounting framework based on an inter-country input-output (ICIO) model distinguishing between domestic-owned enterprises (DOEs) and foreign-invested enterprises (FIEs), which is classified as trade-based, investment-based and hybrid-based emissions. Using AMNE-ICIO tables from 2005 to 2016, this paper traces emissions and carbon intensity in relational GVC activities at the global, economic, and industry levels. We find the following: (1) Investment-based emissions accounted for about 94.15% of the increase in relational GVC emissions, of which more than half comes from the interactive activities between DOEs and FIEs. (2) For the United States, high-income economies, and high-tech manufacturing, investment-based emissions were higher than trade-based emissions, and the reverse was true for upper-middle and lower-middle income economies and China. (3) Although relational GVC carbon intensity was high, the trend of decline was significant. (4) Compared to trade activities, investment-based activities were less carbon intensity in China and upper-middle income economies due to the interaction of production between FIEs and DOEs. The findings add new insights into the coordination of global emissions reductions and the allocation of emissions responsibility. • Emphasize the interdependence between enterprises in cross-border production. • Combine GVC linkages with carbon emissions and carbon intensity. • Investment-based emissions are the main factor of relational GVC emissions growth. • The carbon intensity of relational GVC decreased significantly. • Developing countries can access green spillover through investment-based GVC links. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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