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Domestic value chain embedding and renewable energy efficiency: sectoral evidence from China

Author

Listed:
  • Guo Chen

    (Hubei University
    Hubei University)

  • Naiqian Wu

    (Central China Normal University)

  • Baoxi Li

    (Shaoxing University)

Abstract

With the escalation of geopolitical tensions, many countries have shifted their focus from global value chains (GVCs) to domestic value chains (DVCs). Simultaneously, the accelerating pace of global low-carbon economic development has imposed higher requirements on renewable energy utilization. Given the dual context of China’s economic transformation and green development, this study employs three-dimensional data encompassing 30 provinces and 13 sub-manufacturing sectors from 2002 to 2017 to empirically examine the causal relationship between DVC embedding and renewable energy efficiency. The findings reveal that DVC embedding leads to a reduction in renewable energy efficiency. The mechanism analysis demonstrates that DVC embedding decreases renewable energy intensity and green total factor productivity, thereby inhibiting the improvement of renewable energy efficiency. The heterogeneity analysis indicates that the negative impact of DVC embedding on renewable energy efficiency is more pronounced in low-pollution industries, high-tech industries, and central-western provinces. This study provides a decision-making reference for developing countries to coordinate domestic value chain optimization with energy structure adjustment, offering practical significance for achieving energy-saving and emission-reduction targets.

Suggested Citation

  • Guo Chen & Naiqian Wu & Baoxi Li, 2025. "Domestic value chain embedding and renewable energy efficiency: sectoral evidence from China," Economic Change and Restructuring, Springer, vol. 58(4), pages 1-34, August.
  • Handle: RePEc:kap:ecopln:v:58:y:2025:i:4:d:10.1007_s10644-025-09892-1
    DOI: 10.1007/s10644-025-09892-1
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    Keywords

    Domestic value chain; Renewable energy efficiency; Renewable energy intensity; Productivity;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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