Global value chain embeddedness (GVCE) exhibits nonlinear decarbonization effects in China’s sunset industries, enabled by technological spill overs across value chain stages.
Authors
Xiongfeng Pan, School of Economics and Management, Dalian University of Technology, China
Cong Zhen, School of Economics and Management, Dalian University of Technology, China
Sachin Kumar Mangla, Jindal Global Business School, O.P. Jindal Global University, Sonipat, Haryana, India; Plymouth Business School, University of Plymouth, UK
Shivam Gupta, Department of Information Systems, Supply Chain Management & Decision Support, NEOMA Business School, France
Imran Ali, School of Business and Law, Central Queensland University, Melbourne Campus, Australia
Malin Song, Key Laboratory of Philosophy and Social Sciences for Low-Carbon Development and Carbon Finance, Anhui University of Finance and Economics, China
Summary
Given the increasing severity of climate change, decarbonization strategies have emerged as a critical approach for achieving net zero emissions. By Integrating the Pollution Haven Hypothesis and the Pollution Halo Hypothesis, this study proposes a novel framework to investigate the interrelations nexus among global value chain embeddedness (GVCE), technological capabilities, and decarbonization in subset industries. Using multiple databases, panel data was collected from 2008 to 2022 for 11 sunset industries in China. Our findings demonstrate a non-linear relationship between GVCE and the decarbonization of sunset industries, challenging the prevailing linear perspective and shedding light on the complex nature of carbon reduction mechanisms. Additionally, we identify technological spill over effects associated with participation in GVC, illustrating how firms in developing countries can utilize GVC to enhance their technological competencies while also contributing to decarbonization efforts. This research also presents empirical evidence on the heterogenous impact of GVC participation across different stages of the value chain, offering actionable insights for policymakers and industry leaders seeking to enhance carbon reduction strategies within GVC, especially in sunset industries. Our study also aligns with the two important United Nations Sustainable Development Goals: Responsible Consumption and Production (SDG 12) and Climate Change (SDG 13).
Published in: International Journal of Production Economics
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