IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/zb3rh.html
   My bibliography  Save this paper

Carbon fueling complex global value chains tripled in the period 1995-2012

Author

Listed:
  • Hertwich, Edgar

    (Norwegian University of Science and Technology)

Abstract

Complex global value chains are those involving more than two countries and imply that a country imports products as capital goods or intermediate inputs to the production of its exports. When tracing the life-cycle greenhouse gas (GHG) emissions of traded products, for example for border carbon adjustments, such emissions are counted at each border crossing. The prevalence and dynamics of this phenomenon have been poorly understood. This paper shows that GHG emissions associated with the production of imports used for producing exports have risen rapidly from 1995, peaking in 2012 and declining slightly to 2016. They now constitute a total of 4.4 PgCO2equ. or 10% of global emissions. The most important exported products in terms of emissions associated with imported inputs are chemicals, vehicles, machinery, and information and communications technology (ICT). Crude petroleum, iron and steel, chemicals, and ICT components are the imported products being used for this export production. A driver analysis indicates that in industrialized countries, the declining domestic value added in exports and increasing share of exports in GDP have contributed most to this development, while in emerging economies, the growth of GDP itself has been an important driving factor, while declines in the energy intensity of export production have provided a weak counterbalance. The importance of transiting carbon raises questions of how climate policies affect industrial competitiveness and how border tax adjustment would account for such emissions.

Suggested Citation

  • Hertwich, Edgar, 2020. "Carbon fueling complex global value chains tripled in the period 1995-2012," SocArXiv zb3rh, Center for Open Science.
  • Handle: RePEc:osf:socarx:zb3rh
    DOI: 10.31219/osf.io/zb3rh
    as

    Download full text from publisher

    File URL: https://osf.io/download/5bfd80e493731d0018323289/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/zb3rh?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. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2014. "Tracing Value-Added and Double Counting in Gross Exports," American Economic Review, American Economic Association, vol. 104(2), pages 459-494, February.
    2. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    3. Konstantin Stadler & Kjartan Steen-Olsen & Richard Wood, 2014. "The 'Rest Of The World' - Estimating The Economic Structure Of Missing Regions In Global Multi-Regional Input-Output Tables," Economic Systems Research, Taylor & Francis Journals, vol. 26(3), pages 303-326, September.
    4. Rahel Aichele & Gabriel Felbermayr, 2015. "Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 104-115, March.
    5. Konstantin Stadler & Richard Wood & Tatyana Bulavskaya & Carl†Johan Södersten & Moana Simas & Sarah Schmidt & Arkaitz Usubiaga & José Acosta†Fernández & Jeroen Kuenen & Martin Bruckner & Stefan, 2018. "EXIOBASE 3: Developing a Time Series of Detailed Environmentally Extended Multi†Regional Input†Output Tables," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 502-515, June.
    6. Daniel Moran & Richard Wood & João F. D. Rodrigues, 2018. "A Note on the Magnitude of the Feedback Effect in Environmentally Extended Multi†Region Input†Output Tables," Journal of Industrial Ecology, Yale University, vol. 22(3), pages 532-539, June.
    7. Herendeen, Robert A., 1978. "Input-output techniques and energy cost of commodities," Energy Policy, Elsevier, vol. 6(2), pages 162-165, June.
    8. Babiker, Mustafa H., 2001. "Subglobal climate-change actions and carbon leakage: the implication of international capital flows," Energy Economics, Elsevier, vol. 23(2), pages 121-139, March.
    9. Jiansuo Pei & Bo Meng & Fei Wang & Jinjun Xue & Zhongxiu Zhao, 2018. "Production Sharing, Demand Spillovers And Co2 Emissions: The Case Of Chinese Regions In Global Value Chains," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(02), pages 275-293, March.
    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. Zhang, Danyang & Wang, Hui & Löschel, Andreas & Zhou, Peng, 2021. "The changing role of global value chains in CO2 emission intensity in 2000–2014," Energy Economics, Elsevier, vol. 93(C).
    2. Andrea M. Bassi & Valeria Costantini & Elena Paglialunga, 2021. "Modelling the European Union Sustainability Transition: A Soft-Linking Approach," Sustainability, MDPI, Open Access Journal, vol. 13(11), pages 1-24, June.

    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. Hertwich, Edgar G., 2020. "Carbon fueling complex global value chains tripled in the period 1995–2012," Energy Economics, Elsevier, vol. 86(C).
    2. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2017. "Carbon Dioxide Emissions and Economic Growth: An Assessment Based on Production and Consumption Emission Inventories," Ecological Economics, Elsevier, vol. 135(C), pages 269-279.
    3. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2020. "Wage response to global production links: evidence for workers from 28 European countries (2005–2014)," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(4), pages 769-801, November.
    4. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    5. Duncan van Limbergen & Robert Vermeulen, 2020. "The importance of value chains for euro area trade: a time series perspective," DNB Working Papers 672, Netherlands Central Bank, Research Department.
    6. Kaltenegger, Oliver & Löschel, Andreas & Pothen, Frank, 2017. "The effect of globalisation on energy footprints: Disentangling the links of global value chains," Energy Economics, Elsevier, vol. 68(S1), pages 148-168.
    7. Ying Ge & Tony Fang & Yeheng Jiang, 2019. "Access to imported intermediates and intra‐firm wage inequality," The World Economy, Wiley Blackwell, vol. 42(8), pages 2364-2384, August.
    8. Victor Kummritz, 2015. "Global Value Chains: Benefiting the Domestic Economy?," IHEID Working Papers 02-2015, Economics Section, The Graduate Institute of International Studies.
    9. Pierluigi Montalbano & Silvia Nenci & Carlo Pietrobelli, 2018. "Opening and linking up: firms, GVCs, and productivity in Latin America," Small Business Economics, Springer, vol. 50(4), pages 917-935, April.
    10. João Amador & Sónia Cabral, 2017. "Networks of Value-added Trade," The World Economy, Wiley Blackwell, vol. 40(7), pages 1291-1313, July.
    11. Fertö, I., 2018. "Global Agri-food Trade Competitiveness: Gross Versus Value Added Exports," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(4), December.
    12. Ferraz, Lucas Pedreira do Couto & Gutierre, Leopoldo & Cabral, Rodolfo Arruda, 2015. "The manufacturing industry in Brazil in the era of global value chains," Textos para discussão 402, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    13. Aichele, Rahel & Heiland, Inga, 2018. "Where is the value added? Trade liberalization and production networks," Journal of International Economics, Elsevier, vol. 115(C), pages 130-144.
    14. João Amador & Sónia Cabral & Rossana Mastrandrea & Franco Ruzzenenti, 2018. "Who’s Who in Global Value Chains? A Weighted Network Approach," Open Economies Review, Springer, vol. 29(5), pages 1039-1059, November.
    15. Marilia Marcato & Carolina Baltar & Fernando Sarti, 2019. "International competitiveness in a vertically fragmented production structure: empirical challenges and evidence," Economics Bulletin, AccessEcon, vol. 39(2), pages 876-893.
    16. Maria Savona, 2021. "Revisiting High Development Theory to Explain Upgrading Prospects in Business Services Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 206-226, April.
    17. C. Duprez, 2014. "Creating export value. An analysis of Belgium," Economic Review, National Bank of Belgium, issue ii, pages 23-38, September.
    18. Amat Adarov & Robert Stehrer, 2019. "Implications of Foreign Direct Investment, Capital Formation and its Structure for Global Value Chains," wiiw Working Papers 170, The Vienna Institute for International Economic Studies, wiiw.
    19. Heli Simola, 2018. "Chinese Services Gaining Significance in Global Production Chains," Asian Economic Papers, MIT Press, vol. 17(2), pages 50-64, Summer.
    20. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2020. "The methane footprint of nations: Stylized facts from a global panel dataset," Ecological Economics, Elsevier, vol. 170(C).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:osf:socarx:zb3rh. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://arabixiv.org .

    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: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.