Global value chain embedding mode and carbon emission efficiency: Evidence from China's manufacturing industry

Abstract

With the in-depth development of the global value chain (GVC), it is important to find new ways to improve carbon emission efficiency (CEE) from the perspective of the GVC embedding mode. This study describes the current situation of the GVC embedding mode in China's manufacturing industry from the dual dimension system of GVC participation and length. It further investigates the impact of different GVC embedding modes on CEE to provide new ideas for the realization of low-carbon economic development in China. The study found that (1) the GVC backward embedding mode can improve the CEE, while the forward embedding mode has a restraining impact on CEE; (2) There is industry heterogeneity in the effect of the GVC embedding mode on CEE. The backward embedding mode inhibits CEE in low-energy-consumption industries, and the forward embedding mode characterized by the increase in forward production length promotes CEE in high-energy-consumption and non-technology-intensive industries; (3) The impact will show a significant threshold effect depending on different GVC statuses. With the rise in GVC status, the forward embedding mode, characterized by an increase in forward participation, and the backward embedding mode, characterized by an increase in backward participation, have an inverted U-shaped relationship with CEE.