Research On The Impact Of Gvc Participation On Embodied Carbon In China-EU Trade

Since 2003,China and the European Union announced the China-Eu relations from a "comprehensive partnership" as the "comprehensive strategic partnership",China-EU bilateral trade is continuously expanding,as of 2019 the European Union has 15 consecutive years as China's largest trading partners,China and the EU on trade achievements and deeply involved in the Global value chain(Global value chain,GVC)are inseparable,However,there are differences in the way and participation of China and Europe in the global value chain.Industries in the upper value chain tend to focus on high-value-added and low-pollution production,such as r&d and design services,while industries in the lower value chain focus on low-value-added and high-carbon emissions,such as processing and production.Although China gains trade benefits from China-EU trade,it also pays environmental costs.In recent years,the Eu's carbon emissions have been on the decline,while China has been the world's largest carbon dioxide emitter since 2006,the carbon transfer and carbon leakage hidden under the huge trade volume cannot be ignored.Therefore,studying the difference in the embodied carbon emissions of China and the EU,and exploring the impact of GVC participation on the trade's embodied carbon emissions are of great practical significance for China's embedding into the high end of global value chains and reducing carbon emissions.On the basis of reviewing relevant domestic and foreign literature,this paper selects input-output data from 2000 to 2014,uses the gross trade accounting method that avoids repeated statistics to decompose bilateral trade between China and the EU.Then add carbon emissions data to re-examine the carbon embodied in China-EU trade from a global value chain perspective,decompose the embodied carbon in China-EU trade based on the difference between the source of added value and the place of absorption,and further discuss the sharing of responsibilities for emissions reduction between China and the EU.Divide the participation of the global value chain according to the different embedded links,and then construct an econometric model to empirically examine the impact of China's global value chain participationon the embodied carbon in China-EU trade.According to the calculation and empirical results,the following conclusions are mainly obtained:(1)China-EU bilateral trade exchanges are concentrated in the manufacturing industry.The exporting country is the main source of added value and the importing country is the main absorption place of added value.Compared with the EU,China In the bilateral trade between China and the EU,the value-added of final products is mainly used,and export production mainly depends on the domestic value-added of the country,and it is less dependent on other countries.The results of the repeated statistics show that the method of trade statistics considering only the final product export will Exaggerated total exports.(2)The carbon transfer links of China-EU trade are mainly "Chinese production and EU consumption".70% of the carbon emissions embodied in China-EU trade are generated by China's domestic production,and the EU and other countries produce less than 30% of carbon.However,it consumes 80% of the total carbon contained in China-Eu trade.It is unfair to divide the responsibility for reducing trade emissions based on the perspective of producers.(3)The global value chain participation of various industries in the European Union is superior to China,and it is in the upstream position of the value chain.Manufacturing is the industry with the highest global value chain participation in both countries.(4)The increase in China's global value chain participation can significantly reduce the embodied carbon emissions in China-EU trade.Taking into account the different embedding modes of the value chain,the participation of GVC based on forward link embedding has a negative correlation with China-EU trade embodied carbon,but Improved GVC participation based on backward link embedding will increase carbon emissions.Based on empirical results,this article believes that in order to better embed global value chains and achieve emission reduction goals,China can make full use of the“The Belt and Road” initiative to explore cooperation with neighboring countries in accessing sustainable resources and improving energy efficiency,while deepening Cooperation with the European Union in the field of energy conservation and emission reduction encourages various industries to communicate and learn withupstream industries in the value chain to increase GVC participation based on forward link embedding.