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Does Global Value Chain Participation Decouple Chinese Development from CO2 Emissions? A Structural Decomposition Analysis

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  • Hui Wang, Chen Pan, B.W. Ang, and Peng Zhou

Abstract

Decoupling economic activities and CO2 emissions is central to achieving the climate goals of China. The countryýs participation in global value chains has profound impacts on its economy as well as CO2 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 CO2 emission intensity from both the production and consumption perspectives. It is found that Chinaýs 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.

Suggested Citation

  • Hui Wang, Chen Pan, B.W. Ang, and Peng Zhou, 2021. "Does Global Value Chain Participation Decouple Chinese Development from CO2 Emissions? A Structural Decomposition Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 183-204.
    • Handle: RePEc:aen:journl:ej42-2-wang
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    Cited by:

    1. Zhao, Jun & Dong, Xiucheng & Dong, Kangyin, 2021. "How does producer services’ agglomeration promote carbon reduction?: The case of China," Economic Modelling, Elsevier, vol. 104(C).
    2. 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).
    3. Yang, Yafei & Wang, Hui & Löschel, Andreas & Zhou, Peng, 2022. "Patterns and determinants of carbon emission flows along the Belt and Road from 2005 to 2030," Ecological Economics, Elsevier, vol. 192(C).

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    JEL classification:

    • F0 - International Economics - - General

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