IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v156y2021ics0301421521002780.html
   My bibliography  Save this article

Can the rise of the manufacturing value chain be the driving force of energy conservation and emission reduction in China?

Author

Listed:
  • Zhou, Yi
  • Zhuo, Chengfeng
  • Deng, Feng

Abstract

China is the largest country in energy consumption and carbon emissions. At the same time, with the continuous rise of China's manufacturing value chain, the impact of the manufacturing value chain on energy conservation and emission reduction is a very necessary and key research. This paper theoretically analyzes the impact of value chain climbing in manufacturing industry on energy conservation and emission reduction, and empirically tests the relationship between the two. This paper further explores the transmission mechanism between the two, and analyzes the hierarchical heterogeneity of the manufacturing industry. It is found that the ascent of manufacturing value chain has a significant promoting effect on energy conservation and emission reduction. In this conduction path, the innovation-driven effect and the structural upgrading effect play a positive role in promoting. Among them, the innovation-driven effect is more powerful and effective in promoting energy conservation and emission reduction. Further analysis shows that in this path, different industries have asymmetric effects on energy saving and emission reduction. Energy-intensive industries have huge potential for energy conservation and emission reduction. In the process of upgrading, technology-intensive industries have a more significant effect of energy conservation and emission reduction, which enables energy conservation, emission reduction, quality and efficiency improvement. In this paper, the policy system of energy saving and emission reduction should be carried out simultaneously. More importantly, it should be detailed by manufacturing industry category. This can greatly improve the efficiency of policy implementation. Finally, “precise energy saving” and “precise emission reduction” will be realized.

Suggested Citation

  • Zhou, Yi & Zhuo, Chengfeng & Deng, Feng, 2021. "Can the rise of the manufacturing value chain be the driving force of energy conservation and emission reduction in China?," Energy Policy, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:enepol:v:156:y:2021:i:c:s0301421521002780
    DOI: 10.1016/j.enpol.2021.112408
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421521002780
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2021.112408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
    2. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    3. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    4. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    5. Dani Rodrik, 2006. "What's So Special about China's Exports?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 1-19, September.
    6. Hiau Looi Kee & Heiwai Tang, 2016. "Domestic Value Added in Exports: Theory and Firm Evidence from China," American Economic Review, American Economic Association, vol. 106(6), pages 1402-1436, June.
    7. Ulrich Wagner & Christopher Timmins, 2009. "Agglomeration Effects in Foreign Direct Investment and the Pollution Haven Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(2), pages 231-256, June.
    8. Lu, Yue & Shi, Huimin & Luo, Wei & Liu, Bin, 2018. "Productivity, financial constraints, and firms' global value chain participation: Evidence from China," Economic Modelling, Elsevier, vol. 73(C), pages 184-194.
    9. Zhang, Wei & Li, Ke & Zhou, Dequn & Zhang, Wenrui & Gao, Hui, 2016. "Decomposition of intensity of energy-related CO2 emission in Chinese provinces using the LMDI method," Energy Policy, Elsevier, vol. 92(C), pages 369-381.
    10. Peter K. Schott, 2008. "The relative sophistication of Chinese exports [‘Manufacturing Earnings and Compensation in China’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 23(53), pages 6-49.
    11. Liu, Hongxun & Li, Jianglong & Long, Houyin & Li, Zhi & Le, Canyu, 2018. "Promoting energy and environmental efficiency within a positive feedback loop: Insights from global value chain," Energy Policy, Elsevier, vol. 121(C), pages 175-184.
    12. XU, Bin & LU, Jiangyong, 2009. "Foreign direct investment, processing trade, and the sophistication of China's exports," China Economic Review, Elsevier, vol. 20(3), pages 425-439, September.
    13. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zheng, Jiali & Feng, Gengzhong & Ren, Zhuanzhuan & Qi, Nengxi & Coffman, D'Maris & Zhou, Yunlai & Wang, Shouyang, 2022. "China's energy consumption and economic activity at the regional level," Energy, Elsevier, vol. 259(C).
    2. Yu, Hongyang & Wang, Jinchao & Xu, Jiajun, 2023. "Assessing the role of digital economy agglomeration in energy conservation and emission reduction: Evidence from China," Energy, Elsevier, vol. 284(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burak Sencer Atasoy, 2021. "The determinants of export sophistication: Does digitalization matter?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5135-5159, October.
    2. Nebojsa Stojcic & Edvard Orlic, 2016. "Foreign Direct Investment And Structural Transformation Of Exports," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 25(2), pages 355-378, december.
    3. Jarreau, Joachim & Poncet, Sandra, 2012. "Export sophistication and economic growth: Evidence from China," Journal of Development Economics, Elsevier, vol. 97(2), pages 281-292.
    4. Huiying Zhang & Xiaohui Yang, 2016. "Intellectual Property Rights and Export Sophistication," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-19, October.
    5. Li, Changqing & Lu, Jian, 2018. "R&D, financing constraints and export green-sophistication in China," China Economic Review, Elsevier, vol. 47(C), pages 234-244.
    6. Baliamoune-Lutz, Mina, 2019. "Trade sophistication in developing countries: Does export destination matter?," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 39-51.
    7. Xiaoping Li & Shuzhou Peng & Wei‐Chiao Huang & Qian Zhou, 2022. "What Drives Chinese Firms' Export Sophistication? A Perspective from the Rise of Minimum Wages," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(2), pages 28-59, March.
    8. Zhu, Shujin & Fu, Xiaolan, 2013. "Drivers of Export Upgrading," World Development, Elsevier, vol. 51(C), pages 221-233.
    9. Faheem Ur Rehman & Ejaz Ahmad & Muhammad Asif Khan & József Popp & Judit Oláh, 2021. "Does Trade Related Sectoral Infrastructure Make Chinese Exports More Sophisticated and Diversified?," Sustainability, MDPI, vol. 13(10), pages 1-21, May.
    10. Hu, Yuanhong, 2020. "Trade Facilitation, R&D Innovation, and Export Sophistication of Manufacturing Industries: Evidence from Russia and Central-Eastern European Countries," EconStor Preprints 222927, ZBW - Leibniz Information Centre for Economics.
    11. Bawoo Kim, 2017. "What has China learned from processing trade?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-14, December.
    12. Sourafel Girma & Yundan Gong & Holger Görg & Zhihong Yu, 2009. "Can Production Subsidies Explain China's Export Performance? Evidence from Firm‐level Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 863-891, December.
    13. Naima Chrid & Sami Saafi & Mohamed Chakroun, 2021. "Export Upgrading and Economic Growth: a Panel Cointegration and Causality Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 811-841, June.
    14. Acheampong, Alex O., 2019. "Modelling for insight: Does financial development improve environmental quality?," Energy Economics, Elsevier, vol. 83(C), pages 156-179.
    15. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.
    16. Poncet, Sandra & Starosta de Waldemar, Felipe, 2013. "Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness," World Development, Elsevier, vol. 51(C), pages 104-118.
    17. Glawe, Linda & Wagner, Helmut, 2020. "China in the middle-income trap?," China Economic Review, Elsevier, vol. 60(C).
    18. Shao, Shuai & Yang, Lili & Yu, Mingbo & Yu, Mingliang, 2011. "Estimation, characteristics, and determinants of energy-related industrial CO2 emissions in Shanghai (China), 1994-2009," Energy Policy, Elsevier, vol. 39(10), pages 6476-6494, October.
    19. Gabor Pula & Daniel Santabárbara, 2012. "Is china climbing up the quality ladder?," Working Papers 1209, Banco de España.
    20. Tiago V. De V. Cavalcanti & Kamiar Mohaddes & Mehdi Raissi, 2015. "Commodity Price Volatility and the Sources of Growth," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(6), pages 857-873, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:156:y:2021:i:c:s0301421521002780. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.