The Impact of Trade on Carbon Emissions and Employment from the Perspective of Global Value Chains—A Case Study of Chinese–Japanese–Korean Trade

Abstract

While international trade drives countries’ economic growth and promotes employment, it also has some environmental impact. To investigate the impact of trade on carbon emissions and employment, this study performs a detailed decomposition and measurement of embodied carbon emissions and employment in value-added trade between China, Japan, and Korea from 2007–2019. The current study established that, while China’s trade with Japan and Korea created many domestic jobs, it also resulted in significant domestic carbon emissions. While Japan and Korea’s trade with China reduced carbon emissions, employment in their own countries was reduced and replaced by employment in China. At the value chain route level, trade among the three countries through each value chain route either achieves employment promotion at the cost of increased carbon emissions or promotes domestic emissions reduction at the cost of employment loss. However, it is worth noting that, when trade between Japan and Korea was conducted through simple GVCs (route 2), it not only helped reduce Japan’s carbon emissions, but also effectively promoted employment. This is the ideal trade route. The results of this study can provide useful reference information for developing countries such as China, to achieve sustainable economic growth, carbon emission reduction, and employment promotion in the context of trade globalization.