How global production shapes carbon emissions outcomes: evidence from a multi-regional input–output perspective

Technology is crucial for meeting international climate goals, particularly through the diffusion of low-carbon innovation. Given the fragmentation of production, the structure of global value chains (GVCs) strongly influences emissions. This study uses multi-regional input–output (MRIO) tables (1995–2015) to examine trends in production, technology, and carbon intensity across key sectors in advanced and developing countries. We assess GVC positions and environmental indicators, followed by an econometric analysis of how GVC participation influences embodied carbon emissions and global emission intensity. Results show a strong link between GVC involvement and emissions, with China emerging as a dominant input provider. We also observe a positive relationship between backward GVC orientation and environmental indicators, stressing the need for upstream decarbonization.