Global value chain participation and firm-level carbon emissions: Evidence from China

Key Points

• Firm-level carbon emissions significantly increase with higher participation in global value chains, especially in industrial sectors.
• The analysis finds that increased global engagements elevate carbon emissions by approximately 12% across various firms.
• Data was collected from multiple Chinese industries, focusing on their involvement in global supply chains and associated emissions.
• The findings highlight the need for strategies to mitigate emissions while enhancing global trade involvement, addressing sustainability challenges.