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Tracing embodied energy use through global value chains: Channel decomposition and analysis of influential factors

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  • Li, Meng
  • Gao, Yuning
  • Meng, Bo
  • Meng, Jing

Abstract

Measurement of the energy use dispersed through international trade is crucial in the age of global value chains. This study traces international energy flows, presents the stylized facts, and analyses the major driving factors of energy flows. The findings of this study show that 20% of global energy is transmitted through global value chains and there is large energy imbalance between economies. The gravity model illustrates that energy transfers between home and host countries increase with economic size, a shared border, a same language, and a similar legal system, and decrease with geographic distance. However, distance is becoming less significant in transmitting energy due to the increasing complexity of global value chains. Global value chains have altered how the world consumes energy directly and indirectly, thus must be taken into consideration by both environmental and trade policies aiming at encouraging sustainable development, equity, and energy conservation.

Suggested Citation

  • Li, Meng & Gao, Yuning & Meng, Bo & Meng, Jing, 2023. "Tracing embodied energy use through global value chains: Channel decomposition and analysis of influential factors," Ecological Economics, Elsevier, vol. 208(C).
    • Handle: RePEc:eee:ecolec:v:208:y:2023:i:c:s0921800923000290
    DOI: 10.1016/j.ecolecon.2023.107766
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    Cited by:

    1. Wenqi Li & Qi Li & Ming Chen & Yutong Su & Jianhua Zhu, 2023. "Global Value Chains, Digital Economy, and Upgrading of China’s Manufacturing Industry," Sustainability, MDPI, vol. 15(10), pages 1-25, May.

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