The Impact Of Domestic Value Chain On Environmental Pollution

As China’s economic enters a new stage of focusing on quality,the conflict between economic growth and environmental pollution under the international specialization has become fiercer.Depend on the core control in global production network,developed countries transfer domestic pollution to developing countries through direct or indirect patterns.Countries that undertake pollution processes have also changed while optimizing the industrial layout.Therefore,pollution accompanied by product trade formed a new pattern of inter-regional and intra-regional flow of countries.The domestic value chain based on the local market has strong functionality and upgrade potential,and is a effective way to crack the conflict between economic growth and environmental pollution.Based on the classic trade environment model framework,the thesis builds an environmental effect model for the production segmentation under the open economy.Taking the number of production segmentation stages as a measure of the development level and complexity of the domestic value chain,the time and space characteristics of the value chain division and pollutant discharge in the eight regions are compared and analyzed.Using PCSE and spatial panel analysis methods,the research try to explore the impact of domestic value chain division of labor on environmental pollution.The results show that the expansion of the domestic value chain improve the overall environmental situation in China.From the perspective of deconstruction of the domestic value chain,due to the different value chain integrity at different spatial scales,intra-regional,domestic and international value chain lengths have different effects on environmental pollution on intra-regional and provincial.At a smaller spatial scale,the increased level of production specialization within a region and the enhanced production linkages between regions have significantly reduced pollution emissions,while the international division of labor linkage has shown significant environmental improvement at a large spatial scale.The analysis of the mechanism of adding the multiplication of the number of production segmentation and control variables shows that the increase in the complexity of production at the regional level and outside the domestic domain can amplify the improvement effect of structural effects on the environment.To offset the pollution emissions caused by the backward technology within the region,the economic expansion at the provincial level has significantly improved the environmental quality under the production links within the region and outside the domestic region,and the structure of export products based on processing trade under the international production contact has adversely affected the environmental quality.Considering the strong spatial dependence of environmental pollution,the increase of overall production segmentation,within and outside the region production segmentation also significantly reduces environmental pollution.Under the estimation of the dynamic space panel,the division of production in domestic value chain not only has a direct impact on the current level of pollution emissions in the region,but also indirectly affects the pollution emissions of neighboring areas and adversely affects the province.The direct and indirect effect decomposition results of pollution impact show that direct effect is the impact of regional value chain division of labor on environmental pollution,and indirect effect is the increase in domestic value chain production segmentation in the surrounding areas of a province is not conducive to improving the environment quality.Therefore,improving the level of domestic specialization and production complexity,and implementing cross-regional joint governance are feasible ways to improve the environmental pollution situation.