Decarbonisation and specialisation downgrading: The double harm of GVC integration

B-Tier
Journal: World Development
Year: 2025
Volume: 194
Issue: C

Authors (3)

Dosi, Giovanni (not in RePEc) Riccio, Federico (not in RePEc) Virgillito, Maria Enrica (Scuola Superiore Sant'Anna)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study explores the double harm of Global Value Chain (GVC) integration by analysing the link between the international division of productive activities and emissions. Methodologically, we propose a framework to disentangle the developmental and sectoral origins of CO2 emissions within GVCs. By providing a granular decomposition of domestic and foreign contributions, we identify foreign backward linkages as the primary carriers of CO2 emissions along GVCs, surpassing domestic inputs in their CO2 footprint. From a within-country perspective, we examine how a country’s internal production structure shapes CO2 emission profiles across development stages, shedding light on the interplay between economic growth and environmental sustainability. At the cross-country level, we analyse how the changing geography of production, and the ensuing sectoral specialisation, impacts global emissions. The relocation of low-tech and natural resources-based productions to developing countries via GVCs has jointly amplified worldwide emissions and reinforced patterns of industrial and ecological downgrading for developing nations. Implications of our findings entail the coupling of environmental, trade and industrial policies.

Technical Details

RePEc Handle
repec:eee:wdevel:v:194:y:2025:i:c:s0305750x25001329
Journal Field
Development
Author Count
3
Added to Database
2026-01-25