IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v34y2025i3p3062-3085.html

Global Value Chains Participation and Air Pollution: Does Digital Economy Matter?

Author

Listed:
  • Lu Zheng
  • Jingzhi Zhu
  • Yuhuan Zhao
  • Zhiling Qian
  • Ziyi Zhao
  • Shunan Fan
  • Sumin Zuo

Abstract

Based on a panel dataset of 47 countries during 1995–2015, this study investigates the impact of global value chains participation, as measured by position index, on air pollution. The moderating effect of digital economy is also examined. The results show that the increase of global value chains position has a negative impact on air pollution. Heterogeneity analyses show that the increase of forward‐linked production length could mitigate air pollution. The negative impact of global value chains position is reflected in non‐OECD countries, and the impact on CO is stronger than other pollutants. The mechanism analyses show that increased global value chains position mitigates air pollution through industrial structure upgrading and technological progress. The moderating effect analyses reveal that digital economy could strengthen the negative impact, in which digital applications play a key role. Digital economy could also strengthen the path of global value chains position affecting air pollution through industrial structure and technological progress. The results reveal that global value chains position should be improved to promote air pollution control, and different countries should implement differentiated strategies. In particular, it is of great significance for pollution control to promote the transformation and integration of digital achievements with digital applications as the breakthrough.

Suggested Citation

  • Lu Zheng & Jingzhi Zhu & Yuhuan Zhao & Zhiling Qian & Ziyi Zhao & Shunan Fan & Sumin Zuo, 2025. "Global Value Chains Participation and Air Pollution: Does Digital Economy Matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 34(3), pages 3062-3085, March.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:3:p:3062-3085
    DOI: 10.1002/bse.4065
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.4065
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.4065?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
    ---><---

    References listed on IDEAS

    as
    1. Wu, Xianhua & Deng, Huai & Li, Hua & Guo, Yiming, 2021. "Impact of Energy Structure Adjustment and Environmental Regulation on Air Pollution in China: Simulation and Measurement Research by the Dynamic General Equilibrium Model," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    2. Pan, Wenrong & Xie, Tao & Wang, Zhuwang & Ma, Lisha, 2022. "Digital economy: An innovation driver for total factor productivity," Journal of Business Research, Elsevier, vol. 139(C), pages 303-311.
    3. Denis Maillat, 1998. "Innovative milieux and new generations of regional policies," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(1), pages 1-16, January.
    4. Ru-Jin Huang & Yanlin Zhang & Carlo Bozzetti & Kin-Fai Ho & Jun-Ji Cao & Yongming Han & Kaspar R. Daellenbach & Jay G. Slowik & Stephen M. Platt & Francesco Canonaco & Peter Zotter & Robert Wolf & Sim, 2014. "High secondary aerosol contribution to particulate pollution during haze events in China," Nature, Nature, vol. 514(7521), pages 218-222, October.
    5. Shi, Qiaoling & Zhao, Yuhuan & Qian, Zhiling & Zheng, Lu & Wang, Song, 2022. "Global value chains participation and carbon emissions: Evidence from Belt and Road countries," Applied Energy, Elsevier, vol. 310(C).
    6. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    7. Hille, Erik & Shahbaz, Muhammad & Moosa, Imad, 2019. "The impact of FDI on regional air pollution in the Republic of Korea: A way ahead to achieve the green growth strategy?," Energy Economics, Elsevier, vol. 81(C), pages 308-326.
    8. Muhammad, Sulaman & Long, Xingle & Salman, Muhammad & Dauda, Lamini, 2020. "Effect of urbanization and international trade on CO2 emissions across 65 belt and road initiative countries," Energy, Elsevier, vol. 196(C).
    9. Habibi, Fateh & Zabardast, Mohamad Amjad, 2020. "Digitalization, education and economic growth: A comparative analysis of Middle East and OECD countries," Technology in Society, Elsevier, vol. 63(C).
    10. Weibing Li & Kaixia Zhang, 2019. "Does Air Pollution Crowd Out Foreign Direct Investment Inflows? Evidence from a Quasi-natural Experiment in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(4), pages 1387-1414, August.
    11. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Correction to: Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(8), pages 1353-1353, October.
    12. Hao, Xiaoli & Wen, Shufang & Xue, Yan & Wu, Haitao & Hao, Yu, 2023. "How to improve environment, resources and economic efficiency in the digital era?," Resources Policy, Elsevier, vol. 80(C).
    13. Luo, Kang & Liu, Yaobin & Chen, Pei-Fen & Zeng, Mingli, 2022. "Assessing the impact of digital economy on green development efficiency in the Yangtze River Economic Belt," Energy Economics, Elsevier, vol. 112(C).
    14. Zhu, Bangzhu & Zhang, Mengfan & Zhou, Yanhua & Wang, Ping & Sheng, Jichuan & He, Kaijian & Wei, Yi-Ming & Xie, Rui, 2019. "Exploring the effect of industrial structure adjustment on interprovincial green development efficiency in China: A novel integrated approach," Energy Policy, Elsevier, vol. 134(C).
    15. Moon Joon Kim, 2021. "Air Pollution, Health, and Avoidance Behavior: Evidence from South Korea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(1), pages 63-91, May.
    16. Ma, Qiang & Tariq, Muhammad & Mahmood, Haider & Khan, Zeeshan, 2022. "The nexus between digital economy and carbon dioxide emissions in China: The moderating role of investments in research and development," Technology in Society, Elsevier, vol. 68(C).
    17. Lv, Chengchao & Shao, Changhua & Lee, Chien-Chiang, 2021. "Green technology innovation and financial development: Do environmental regulation and innovation output matter?," Energy Economics, Elsevier, vol. 98(C).
    18. Wang, Jing & Wan, Guanghua & Wang, Chen, 2019. "Participation in GVCs and CO2 emissions," Energy Economics, Elsevier, vol. 84(C).
    19. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    20. Yan, Yunfeng & Wang, Ran & Zheng, Xiuxiu & Zhao, Zhongxiu, 2020. "Carbon endowment and trade-embodied carbon emissions in global value chains: Evidence from China," Applied Energy, Elsevier, vol. 277(C).
    21. Fabienne Fortanier & Guannan Miao & Ans Kolk & Niccolò Pisani, 2020. "Accounting for firm heterogeneity in global value chains," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(3), pages 432-453, April.
    22. Balsalobre-Lorente, Daniel & Bekun, Festus Victor & Etokakpan, Mfonobong Udom & Driha, Oana M., 2019. "A road to enhancements in natural gas use in Iran: A multivariate modelling approach," Resources Policy, Elsevier, vol. 64(C).
    23. Hu, Dianxi & Jiao, Jianling & Tang, Yunshu & Xu, Yuwen & Zha, Jianrui, 2022. "How global value chain participation affects green technology innovation processes: A moderated mediation model," Technology in Society, Elsevier, vol. 68(C).
    24. Meng, Bo & Peters, Glen P. & Wang, Zhi & Li, Meng, 2018. "Tracing CO2 emissions in global value chains," Energy Economics, Elsevier, vol. 73(C), pages 24-42.
    25. Bart Los & Marcel P. Timmer & Gaaitzen J. Vries, 2015. "How Global Are Global Value Chains? A New Approach To Measure International Fragmentation," Journal of Regional Science, Wiley Blackwell, vol. 55(1), pages 66-92, January.
    26. Nam, Kyung-Min & Selin, Noelle E. & Reilly, John M. & Paltsev, Sergey, 2010. "Measuring welfare loss caused by air pollution in Europe: A CGE analysis," Energy Policy, Elsevier, vol. 38(9), pages 5059-5071, September.
    27. Ji, Xi & Liu, Yifang & Wu, Guowei & Su, Pinyi & Ye, Zhen & Feng, Kuishuang, 2022. "Global value chain participation and trade-induced energy inequality," Energy Economics, Elsevier, vol. 112(C).
    28. J. Lelieveld & J. S. Evans & M. Fnais & D. Giannadaki & A. Pozzer, 2015. "The contribution of outdoor air pollution sources to premature mortality on a global scale," Nature, Nature, vol. 525(7569), pages 367-371, September.
    29. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    30. 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.
    31. Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
    32. Zhang, Fang & Gallagher, Kelly Sims, 2016. "Innovation and technology transfer through global value chains: Evidence from China's PV industry," Energy Policy, Elsevier, vol. 94(C), pages 191-203.
    Full references (including those not matched with items on IDEAS)

    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. Wei, Long & Li, Wenjing & Jin, Zhida, 2024. "Global value chains participation and trade-induced carbon inequality: A comparative analysis of developed and developing economies," Ecological Economics, Elsevier, vol. 220(C).
    2. Xuemei Guan & Qian Wang & Hira Mansoor & Muhammad Nadeem, 2025. "The impact of natural resource rent, global value chain participation, and financial development on environmental footprints: A global analysis with fresh evidence," Natural Resources Forum, Blackwell Publishing, vol. 49(1), pages 748-775, February.
    3. Shi, Qiaoling & Zhao, Yuhuan & Qian, Zhiling & Zheng, Lu & Wang, Song, 2022. "Global value chains participation and carbon emissions: Evidence from Belt and Road countries," Applied Energy, Elsevier, vol. 310(C).
    4. Luis-Antonio López & Mateo Ortiz & Ángela García-Alaminos & María-Ángeles Cadarso, 2025. "Consequences of legislation-based reshoring for EU carbon emissions in global value chains," Journal of International Business Policy, Palgrave Macmillan, vol. 8(3), pages 298-318, September.
    5. Wang, Jing & Rickman, Dan S. & Yu, Yihua, 2022. "Dynamics between global value chain participation, CO2 emissions, and economic growth: Evidence from a panel vector autoregression model," Energy Economics, Elsevier, vol. 109(C).
    6. Ji, Xi & Liu, Yifang & Wu, Guowei & Su, Pinyi & Ye, Zhen & Feng, Kuishuang, 2022. "Global value chain participation and trade-induced energy inequality," Energy Economics, Elsevier, vol. 112(C).
    7. Shi, Qiaoling & Shan, Yuli & Zhong, Chao & Cao, Ye & Xue, Rui, 2022. "How would GVCs participation affect carbon intensity in the “Belt and Road Initiative” countries?," Energy Economics, Elsevier, vol. 111(C).
    8. Huang, Yongming & Zhang, Yanan, 2023. "Digitalization, positioning in global value chain and carbon emissions embodied in exports: Evidence from global manufacturing production-based emissions," Ecological Economics, Elsevier, vol. 205(C).
    9. Xue, Yan & Tang, Chang & Wu, Haitao & Liu, Jianmin & Hao, Yu, 2022. "The emerging driving force of energy consumption in China: Does digital economy development matter?," Energy Policy, Elsevier, vol. 165(C).
    10. Xu, Ru-Yu & Wang, Ke-Liang & Miao, Zhuang, 2024. "Exploring the impact of digital industry agglomeration on provincial energy efficiency in China: A panel data analysis from 2012 to 2020," Energy, Elsevier, vol. 313(C).
    11. Smith, Matthew & Christopoulos, Dimitris, 2025. "GVC participation and carbon emissions – A network analysis," Ecological Economics, Elsevier, vol. 228(C).
    12. Qingbo Huang & Xinxin Xia & Xiaohan Zhang & Yan Li, 2024. "Can the extension of the global value chain production length promote carbon emissions reduction in China's equipment manufacturing industry?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(2), pages 3165-3192, February.
    13. Senhua Huang & Feng Han & Lingming Chen, 2023. "Can the Digital Economy Promote the Upgrading of Urban Environmental Quality?," IJERPH, MDPI, vol. 20(3), pages 1-21, January.
    14. Muhammad Uzair Ali & Ying Wang, 2024. "Pollution haven or pollution halo? The role of global value chains in Belt and Road economies," Review of Development Economics, Wiley Blackwell, vol. 28(1), pages 168-189, February.
    15. Na Lu & Tiantian Shan & Wen Li & Xuan Liu & Weidong Wang, 2025. "Does the Digital Economy Promote Green Land Use Efficiency?," Sustainability, MDPI, vol. 17(16), pages 1-22, August.
    16. Wang, Bo & Wang, Jianda, 2025. "China’s green digital era: How does digital economy enable green economic growth?," Innovation and Green Development, Elsevier, vol. 4(1).
    17. Reis, Germano Glufke & Villar, Eduardo Guedes & Prado Gimenez, Fernando Antonio & Maiolino Molento, Carla Forte & Ferri, Priscila, 2022. "The interplay of entrepreneurial ecosystems and global value chains: Insights from the cultivated meat entrepreneurial ecosystem of Singapore," Technology in Society, Elsevier, vol. 71(C).
    18. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, . "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2).
    19. Umair Kashif & Junguo Shi & Sihan Li & Qinqin Wu & Qiuya Song & Shanshan Dou & Mengjie Wei & Snovia Naseem, 2024. "Navigating the digital divide: unraveling the impact of ICT usage and supply on SO2 emissions in China’s Yangtze River Delta," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    20. Eduardo Hernandez-Rodriguez & Ron Boschma & Andrea Morrison & Xianjia Ye, 2024. "Functional upgrading and downgrading in global value chains: The role of complementary interregional value chain linkages in EU regions," Papers in Evolutionary Economic Geography (PEEG) 2432, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2024.

    More about this item

    Statistics

    Access and download statistics

    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:bla:bstrat:v:34:y:2025:i:3:p:3062-3085. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    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.