IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v65y2023icp406-416.html
   My bibliography  Save this article

The global dissemination to multinationals of the carbon emissions ruling on Shell

Author

Listed:
  • López, Luis-Antonio
  • Arce, Guadalupe
  • Cadarso, María-Ángeles
  • Ortiz, Mateo
  • Zafrilla, Jorge

Abstract

Shell's landmark ruling ordered to reduce the CO2 emissions to the Shell group by a net 45% by 2030, compared to 2019 levels. In this paper, we analyze the effects of extending Shell's sentence to all the foreign affiliates of multinational enterprises (MNEs) in the world and find that it would result in a 2.85 GtCO2 reduction in global emissions. This amount represents a contribution of between 27% and 40% of the emissions reduction required to meet the 2030 global emissions level for not exceeding 2°C. We focus on MNEs in the automotive industry (such as Volkswagen, Toyota, Nissan, and Ford) and combine the information of their sustainability reports with multiregional input-output data of MNEs’ affiliates. We find that the current targets disclosed by those companies represent 8%-22% of the required reductions in their upstream emissions if the Shell sentence were extended to the automotive industry.

Suggested Citation

  • López, Luis-Antonio & Arce, Guadalupe & Cadarso, María-Ángeles & Ortiz, Mateo & Zafrilla, Jorge, 2023. "The global dissemination to multinationals of the carbon emissions ruling on Shell," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 406-416.
    • Handle: RePEc:eee:streco:v:65:y:2023:i:c:p:406-416
    DOI: 10.1016/j.strueco.2023.03.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X23000462
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2023.03.015?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. López, Luis Antonio & Arce, Guadalupe & Jiang, Xuemei, 2020. "Mapping China's flows of emissions in the world's carbon footprint: A network approach of production layers," Energy Economics, Elsevier, vol. 87(C).
    2. Mateo Ortiz & María‐Ángeles Cadarso & Luis‐Antonio López, 2020. "The carbon footprint of foreign multinationals within the European Union," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1287-1299, December.
    3. Joeri Rogelj & Piers M. Forster & Elmar Kriegler & Christopher J. Smith & Roland Séférian, 2019. "Estimating and tracking the remaining carbon budget for stringent climate targets," Nature, Nature, vol. 571(7765), pages 335-342, July.
    4. Richard Wood & Michael Grubb & Annela Anger-Kraavi & Hector Pollitt & Ben Rizzo & Eva Alexandri & Konstantin Stadler & Dan Moran & Edgar Hertwich & Arnold Tukker, 2020. "Beyond peak emission transfers: historical impacts of globalization and future impacts of climate policies on international emission transfers," Climate Policy, Taylor & Francis Journals, vol. 20(S1), pages 14-27, April.
    5. Yuli Shan & Jiamin Ou & Daoping Wang & Zhao Zeng & Shaohui Zhang & Dabo Guan & Klaus Hubacek, 2021. "Impacts of COVID-19 and fiscal stimuli on global emissions and the Paris Agreement," Nature Climate Change, Nature, vol. 11(3), pages 200-206, March.
    6. Óscar Dejuán & Ferran Portella-Carbó & Mateo Ortiz, 2022. "Economic and environmental impacts of decarbonisation through a hybrid MRIO multiplier-accelerator model," Economic Systems Research, Taylor & Francis Journals, vol. 34(1), pages 1-21, January.
    7. Marco Springmann, 2014. "Integrating emissions transfers into policy-making," Nature Climate Change, Nature, vol. 4(3), pages 177-181, March.
    8. Olivier N. Godart & Holger Görg, 2016. "Suppliers of multinationals and the forced linkage effect: Evidence from firm level data," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 15, pages 277-288, World Scientific Publishing Co. Pte. Ltd..
    9. Luis-Antonio López & María-Ángeles Cadarso & Jorge Zafrilla & Guadalupe Arce, 2019. "The carbon footprint of the U.S. multinationals’ foreign affiliates," Nature Communications, Nature, vol. 10(1), pages 1-11, December.
    10. Duan, Yuwan & Jiang, Xuemei, 2021. "Pollution haven or pollution halo? A Re-evaluation on the role of multinational enterprises in global CO2 emissions," Energy Economics, Elsevier, vol. 97(C).
    11. Corinne Le Quéré & Glen P. Peters & Pierre Friedlingstein & Robbie M. Andrew & Josep G. Canadell & Steven J. Davis & Robert B. Jackson & Matthew W. Jones, 2021. "Fossil CO2 emissions in the post-COVID-19 era," Nature Climate Change, Nature, vol. 11(3), pages 197-199, March.
    12. Takeshi Kuramochi & Mark Roelfsema & Angel Hsu & Swithin Lui & Amy Weinfurter & Sander Chan & Thomas Hale & Andrew Clapper & Andres Chang & Niklas Höhne, 2020. "Beyond national climate action: the impact of region, city, and business commitments on global greenhouse gas emissions," Climate Policy, Taylor & Francis Journals, vol. 20(3), pages 275-291, March.
    13. Charles Cadestin & Koen De Backer & Isabelle Desnoyers-James & Sébastien Miroudot & Davide Rigo & Ming Ye, 2018. "Multinational enterprises and global value chains: the OECD analytical AMNE database," OECD Trade Policy Papers 211, OECD Publishing.
    14. Zengkai Zhang & Dabo Guan & Ran Wang & Jing Meng & Heran Zheng & Kunfu Zhu & Huibin Du, 2020. "Embodied carbon emissions in the supply chains of multinational enterprises," Nature Climate Change, Nature, vol. 10(12), pages 1096-1101, December.
    15. Ortiz, Mateo & Cadarso, María-Ángeles & López, Luis-Antonio & Jiang, Xuemei, 2022. "The trade-off between the economic and environmental footprints of multinationals’ foreign affiliates," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 85-97.
    16. Glen P. Peters & Gregg Marland & Corinne Le Quéré & Thomas Boden & Josep G. Canadell & Michael R. Raupach, 2012. "Rapid growth in CO2 emissions after the 2008–2009 global financial crisis," Nature Climate Change, Nature, vol. 2(1), pages 2-4, January.
    17. Kirsten S. Wiebe & Norihiko Yamano, 2016. "Estimating CO2 Emissions Embodied in Final Demand and Trade Using the OECD ICIO 2015: Methodology and Results," OECD Science, Technology and Industry Working Papers 2016/5, OECD Publishing.
    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. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Pan, An, 2023. "Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises," Economic Modelling, Elsevier, vol. 127(C).
    2. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Zhao, Zhongxiu & Jiao, Aodong, 2023. "Decomposing the carbon footprints of multinational enterprises along global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 13-28.

    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. Ortiz, Mateo & Cadarso, María-Ángeles & López, Luis-Antonio & Jiang, Xuemei, 2022. "The trade-off between the economic and environmental footprints of multinationals’ foreign affiliates," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 85-97.
    2. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Zhao, Zhongxiu & Jiao, Aodong, 2023. "Decomposing the carbon footprints of multinational enterprises along global value chains," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 13-28.
    3. Yan, Yunfeng & Wang, Ran & Chen, Sida & Wang, Feifan & Zhao, Zhongxiu, 2022. "Mapping carbon footprint along global value chains: A study based on firm heterogeneity in China," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 398-408.
    4. Cassetti, Gabriele & Boitier, Baptiste & Elia, Alessia & Le Mouël, Pierre & Gargiulo, Maurizio & Zagamé, Paul & Nikas, Alexandros & Koasidis, Konstantinos & Doukas, Haris & Chiodi, Alessandro, 2023. "The interplay among COVID-19 economic recovery, behavioural changes, and the European Green Deal: An energy-economic modelling perspective," Energy, Elsevier, vol. 263(PC).
    5. Meng, Bo & Gao, Yuning & Ye, Jiabai & Zhang, Meichen & Xing, Yuqing, 2022. "Trade in factor income and the US-China trade balance," China Economic Review, Elsevier, vol. 73(C).
    6. Li, Meng & Meng, Bo & Gao, Yuning & Wang, Zhi & Zhang, Yaxiong & Sun, Yongping, 2022. "Tracing CO2 emissions in global value chains: Multinationals vs. domestically-owned firms," Sustainable Global Supply Chains Discussion Papers 2, Research Network Sustainable Global Supply Chains.
    7. Ma, Ning & Sun, WenLi & Li, Huajiao & Zhou, Xing & Sun, Yihua & Ren, Bo, 2023. "Industrial linkage of global carbon emissions: A heterogeneous ownership perspective," Energy Policy, Elsevier, vol. 172(C).
    8. Zhu, Kunfu & Guo, Xuefan & Zhang, Zengkai, 2022. "Reevaluation of the carbon emissions embodied in global value chains based on an inter-country input-output model with multinational enterprises," Applied Energy, Elsevier, vol. 307(C).
    9. Muhammad Jawad Sajid & Ernesto D. R. Santibanez Gonzalez, 2021. "The Impact of Direct and Indirect COVID-19 Related Demand Shocks on Sectoral CO 2 Emissions: Evidence from Major Asia Pacific Countries," Sustainability, MDPI, vol. 13(16), pages 1-19, August.
    10. Zhang, Yu & Tian, Kailan & Li, Xiaomeng & Jiang, Xuemei & Yang, Cuihong, 2022. "From globalization to regionalization? Assessing its potential environmental and economic effects," Applied Energy, Elsevier, vol. 310(C).
    11. Sander Chan & Thomas Hale & Andrew Deneault & Manish Shrivastava & Kennedy Mbeva & Victoria Chengo & Joanes Atela, 2022. "Assessing the effectiveness of orchestrated climate action from five years of summits," Nature Climate Change, Nature, vol. 12(7), pages 628-633, July.
    12. Zaheer Allam & Ayyoob Sharifi & Damien Giurco & Samantha A. Sharpe, 2021. "On the Theoretical Conceptualisations, Knowledge Structures and Trends of Green New Deals," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    13. Duan, Yuwan & Jiang, Xuemei, 2021. "Pollution haven or pollution halo? A Re-evaluation on the role of multinational enterprises in global CO2 emissions," Energy Economics, Elsevier, vol. 97(C).
    14. Jiang, Xuemei & Zhang, Xinyang & Xia, Yan, 2023. "Peer effect on low-carbon practices of firms along the value chain: Evidence from China," Energy Economics, Elsevier, vol. 127(PA).
    15. Sun, Chen & Song, Junnian & Zhang, Dongqi & Wang, Xiaofan & Yang, Wei & Qi, Zhimin & Chen, Shaoqing, 2023. "Tracing urban carbon footprints differentiating supply chain complexity: A metropolis case," Energy, Elsevier, vol. 282(C).
    16. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Pan, An, 2023. "Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises," Economic Modelling, Elsevier, vol. 127(C).
    17. Ke Zhang & Xingwei Wang, 2021. "Pollution Haven Hypothesis of Global CO 2 , SO 2 , NO x —Evidence from 43 Economies and 56 Sectors," IJERPH, MDPI, vol. 18(12), pages 1-27, June.
    18. Lamperti, Francesco & Bosetti, Valentina & Roventini, Andrea & Tavoni, Massimo & Treibich, Tania, 2021. "Three green financial policies to address climate risks," Journal of Financial Stability, Elsevier, vol. 54(C).
    19. Michael Keen & Ian Parry & James Roaf, 2022. "Border carbon adjustments: rationale, design and impact," Fiscal Studies, John Wiley & Sons, vol. 43(3), pages 209-234, September.
    20. Albert, Osei-Owusu Kwame & Marianne, Thomsen & Jonathan, Lindahl & Nino, Javakhishvili Larsen & Dario, Caro, 2020. "Tracking the carbon emissions of Denmark's five regions from a producer and consumer perspective," Ecological Economics, Elsevier, vol. 177(C).

    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:streco:v:65:y:2023:i:c:p:406-416. 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/inca/525148 .

    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.