Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264178 
Year of Publication: 
2022
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2022: Big Data in Economics
Publisher: 
ZBW - Leibniz Information Centre for Economics, Kiel, Hamburg
Abstract: 
Industries that occupy upstream positions in global value chains (GVCs) - being positioned closer to the raw product - produce proportionately more CO2-intensive. However, firms are heterogeneous, even in narrowly defined industries. In this paper, I empirically investigate whether the relationship between upstreamness and CO2 emissions, measured in absolute and relative terms, holds within industries at the firm level. Using granular data of Indian manufacturing firms and controlling for established drivers of clean production, I reveal that firms producing products closer to final consumption produce less CO2-intensive. I corroborate the finding by using a 2-SLS instrumental variable approach. Interestingly, I find that exposure to importing countries with stringent environmental policies attenuates the link between upstreamness and dirty production. The latter finding suggests the imperative of technology upgrading for dirty upstream producers aiming to remain competitive in international markets.
Subjects: 
Environment and trade
environment and development
CO2 intensity
global value chains
sustainable development
JEL: 
F14
F18
O13
Q56
Document Type: 
Conference Paper

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