Relationships Between Global Value Chain,Energy Consumption,and Carbon Dioxide Emissions In China

During the past two decades,the global value chain(GVC)has dominated international trade and shaped domestic production patterns,greatly contributing to China’s economic growth.China has achieved rapid industrialization through GVC.However,energy-intensive and polluting industries from upstream countries have been introduced into China,leading to a significant increase in energy consumption and carbon emissions.It is worth noting that most studies have discussed the linkages between the GVC,economics,and production,but have not fully discussed the relationship between the GVC,energy consumption,and carbon dioxide emissions.As the largest energy consumer and carbon dioxide emitter,China urgently needs to control energy consumption,actively and steadily promote carbon peaking and carbon neutrality while maintaining economic growth.Therefore,balancing the relationship among the GVC,energy consumption,and carbon emissions has become one of the key issues for China’s medium-and long-term development.Firstly,this paper compared the theories and related literature on the relationship between GVC,energy consumption,and carbon emissions,and analyzed the current research in related fields.Secondly,based on the decomposition method of the GVC,this paper calculated the GVC participation indexes of 20 industries in China from 2000 to 2020 and analyzed the characteristics and changing trends of GVC participation in China at the overall and sectorial levels.An empirical model was constructed based on the environmental outcomes of trade,and the dynamic relationship among GVC,energy consumption,and carbon emissions was examined by second generation unit root test,cointegration test,dynamic common correlated effect model,and panel Granger causality test model.Finally,the heterogeneity of the relationships among different types of GVC participation types,energy consumption,and carbon dioxide emissions was further examined.The heterogeneity of the relationship among GVC,energy consumption,and carbon emissions was explored from the perspective of the new development pattern of "dual circulation".The results of this paper showed that:(1)China’s GVC participation "shrinks and rebounds" under the global shocks in 2008,2018,and 2020.(2)In general,there was a cointegration relationship between GVC participation,energy consumption,and carbon emissions.There was a two-way causality between GVC participation and carbon emissions,while there was a one-way causality from energy consumption to GVC participation and from energy consumption to carbon emissions.(3)There was heterogeneity in the relationship among different GVC participation types,energy consumption,and carbon emissions,and there was a one-way causality from backward complex GVC to carbon dioxide emissions.(4)Domestic economic cycle suppressed the reduction effect of GVC and the emission effect of energy consumption.The research results provided a basis for China to reconcile the relationship between GVC,energy consumption,and carbon dioxide emissions in the stage of GVC reconstruction.