Nonlinear effects of Global Value Chain Participation on Carbon Dioxide Emission: Focusing on OECD Member States

The Organization for Economic Co-operation and Development (OECD) countries, which are the world's largest economies and energy consumers, have significant effects on the global greenhouse gas effect. And the emergence of GVCs has complicated the relationship between trade and Carbon Dioxide () emissions. Under the GVC division of labor system, it is necessary to study its impact on from the perspective of added value, which can make an important contribution to reducing world emissions. First, in this study, the global value chain participation indices of OCED countries are calculated using MATLAB, and second, whether there is an inverse "U" relationship between GVC participation and emissions is verified using the STIRPAT model with 32 OECD countries from 2007 to 2020 as samples. According to the results of the regression analysis, first, OECD countries' participation in GVCs has an inverted U-shaped relationship with emissions. This may be due to the fact that in the early stages of participation in global value chains, scale effects or growth effects dominate, while in the later stages technology spillover effects and competition effects dominate, resulting in an inverted U-shaped relationship. Second, the EKC hypothesis between economic development and emissions was confirmed to be applicable to OECD countries too.