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Global value chain participation and firm-level carbon emissions: Evidence from China

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  • Ge, Huahua
  • Zhang, Xiaoxi
  • Gao, Pengfei
  • Li, Mengjia

Abstract

This study investigates the impact of firm-level participation in global value chains (GVCs) on carbon emissions, using panel data on Chinese A-share listed firms from 2009 to 2023. We construct firm-level measures of GVCs participation based on overseas revenue and export intensity, and combine them with manually collected carbon emission data. Employing several robustness checks, we find evidence that deeper GVC participation significantly increases firms’ carbon emission intensity, supporting the pollution haven hypothesis. Mechanism analyses show that firms with higher expansion capacity experience a stronger emission-increasing effect, consistent with a scale-expansion channel. In contrast, technological innovation does not significantly attenuate the emission effects of GVC participation, suggesting that the environmental benefits of technology upgrading through GVCs have not yet been fully realized. Overall, the findings highlight the dominance of scale effects in shaping firms’ environmental outcomes and point to the importance of enhancing green technology diffusion and value-chain upgrading.

Suggested Citation

  • Ge, Huahua & Zhang, Xiaoxi & Gao, Pengfei & Li, Mengjia, 2026. "Global value chain participation and firm-level carbon emissions: Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 77(C), pages 313-326.
    • Handle: RePEc:eee:streco:v:77:y:2026:i:c:p:313-326
    DOI: 10.1016/j.strueco.2026.02.001
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