Global value chains and carbon emission efficiency: evidence from 30 provinces in China

The severity of global environmental change is a growing issue, primarily as an obvious result of carbon dioxide emissions. This article aims to recognize the causal relationship between Global Value Chains (GVCs) and Carbon Emission Efficiency (CEE) by using 30 provinces from 2000 to 2014 in China. This study calculates the GVCs level in the provincial level considering general trade, process trade, and intermediate trade agents; Besides, a model for the slacks-based measure of super-efficiency in data envelopment analysis (SBM-DEA) was used to measure the CEE. By applying fixed effect model techniques, our estimates reveal critical findings. First, we confirm the existence of the spatial-temporal evolution pattern of CEE in 30 provinces, showing an increased trend and noticeable east-west difference. Second, the econometric results suggest that the GVCs involvement is beneficiary for the CEE. Third, our results confirm that technological innovation and environmental regulation effects contribute to GVCs' influence on CEE. These findings contribute to the formulation of appropriate carbon policies by the Chinese government, thereby advancing the objective of achieving carbon peaking by 2030 and carbon neutrality by 2050.