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Does Global Value Chain Participation Decouple Chinese Development from C Emissions? A Structural Decomposition Analysis
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Does Global Value Chain Participation Decouple Chinese Development from C Emissions? A Structural Decomposition Analysis
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Journal Article
Does Global Value Chain Participation Decouple Chinese Development from C Emissions? A Structural Decomposition Analysis
2021
Overview
Decoupling economic activities and C[O.sub.2] emissions is central to achieving the climate goals of China. The country's participation in global value chains has profound impacts on its economy as well as C[O.sub.2] emissions. Assessing the impacts is fundamental to identifying strategies to decouple China's development from emissions. To this end, we adopt the multi-region structural decomposition analysis technique to quantify the global value chain determinants of China's C[O.sub.2] emission intensity from both the production and consumption perspectives. It is found that China's decoupling from emissions in 2007-2012 was driven mainly by global value chains. Nonetheless the decoupling slowed down after the global financial crisis. In particular, the value chains within China played a more important role in greening Chinese economy. Despite the considerable improvement in 2007-2012, global value chains remained the primary obstacle to environmental sustainability of China. More detailed results with policy implications are presented.
Publisher
Sage Publications Ltd. (UK),International Association for Energy Economics
