Assessing the Relationship Between Global Production Networks and Energy Intensity: Empirical Evidence

This paper examines the relationship between global production networks (GPNs) and energy intensity across 60 countries from 2007 to 2022. The study incorporates various control factors such as high-technology exports, urbanization, and economic development. Utilizing a generalized method of moments estimator, the findings indicate that GPNs contribute to a reduction in energy intensity. Additionally, the research explores the differential impacts of various activities (upstream and downstream) and production networks (forward and backward) on energy intensity. The possibility of a nonlinear relationship between GPNs and energy intensity is also evaluated. The outcomes of this study highlight the importance of policy measures aimed at enhancing climate change mitigation efforts.