Has GVC participation exacerbated inequality of the embodied carbon in fossil energy industry export trade?

Abstract

Introduction: The fossil energy sector is an important part of international trade, and the flow of products between sectors will bring about the flow of embodied carbon. There are relatively few studies on embodied carbon in the fossil energy sector, which are mostly concentrated in other sectors and are not well integrated with GVC. Combining embodied carbon with GVC provides a better view of the allocation of environmental responsibility in trade. At the same time, it can also help different countries to improve the environment with the help of GVC.Methods: This research is based on the World Input–Output Database. First, by using multi-regional input–output, this paper measures fossil energy trade embodied carbon (FEE) data of 39 countries from 2000 to 2014; second, using structural decomposition analysis, we find what factors affect FEE. Finally, we analyze theimpact of global value chain (GVC) on the FEE.Results: This study obtained the following conclusions: 1) different GVCs have different effects on the embodied carbon in trade. Simple forward, complex forward, and simple backward to embedded play a positive role. The complex backward GVC has a negative impact; 2) high-income countries can get greater positive environmental effects through GVC, and middle-income countries cannot obtain or obtain less environmental effects; and 3) the backward GVC affects the FEE by affecting the proportion of fossil energy consumption.Discussion: The results show that the FEE shall be jointly responsible for the world’s countries, and different countries should make different contributions to the world’s environmental protection comprehensively considering factors such as the economic development level of various countries. This proposes relevant policy suggestions in China.