Revisiting the driving force underlying Chinese PM2.5 emissions: From the two perspectives of GVC and IDA

Abstract

ABSTRACT: The depth and breadth of participation in the global value chain (GVC) significantly impacts a country's fine particulate contamination (PM2.5) emissions. First, based on the GVC accounting framework, the sources of PM2.5 emissions in China between 1990 and 2015 are identified and investigated considering production-side, consumption-side, and export-implied pollution. Then, index decomposition analysis (IDA) of emissions is conducted to further investigate the changes in and causes of air pollution in China. Throughout the analytical process, differences between the PM2.5 emissions in two time periods—one of rapid economic growth and another of the “new normal” economy—are compared. The results demonstrate that: China is embedded in high-pollution links of GVCs; China transfers pollution to third-parties by importing intermediate products from resource-intensive countries in the global production system; extensive economic growth caused an increase in China's total PM2.5 emissions, but cleaner production technology can reduce the emissions intensity. Industrial restructuring under the “new normal” has increased China's short-term PM2.5 emissions intensity. These results suggest that China should optimize and upgrade its domestic economic structure and transform its export growth mode to deliver high added value and low pollution. Further, it should prioritize cooperation between the upstream and downstream value chain and accelerate the upgrading of its consumption structure in this new era.

Keywords

• Global value chain (GVC)
• PM2.5 emissions
• index decomposition analysis (IDA) the “new normal” period