Global value chains participation and environmental pollution in developing countries: Does digitalization matter?

Abstract

The study analyses the effect of global value chains participation (GVCP) on CO2 emissions and assesses whether digitalization technologies can enhance environmental quality. We use panel data estimation techniques for 112 developing countries over the period 1990–2018. Findings show that the GVCP contributes to environmental degradation. Other factors that increase environmental damage include FDI inflows, industrial value‐added and electricity consumption. However, renewable energy consumption significantly reduces CO2 emissions. Findings show that digitalization is an effective channel in reducing CO2 emissions in the GVCP in developing countries. These findings have important policy implications in exploring the GVCP's development dynamics in upgrading opportunities from digital technologies to reduce environmental pollution and promote sustainable growth in developing economies.

Can the Top Management Team’s Environmental Attention Promote Corporate Green Innovation?

“…Hence, when the environmental attention score of the TMT of the listed company increases by 1 point, the corporate GI increases by an average of e 0.097 points, or approximately 1.102 points. The time fixed effect is added to column (2), column (3) has no fixed effect, and the TMTEA coefficient in column (2) and column (3) is significantly similar to that in column (1). These results show that TMTEA significantly improves the level of GI.…”

“…Similarly, TMTEA1 is included in the fixed-effect Poisson model. Column (1) in Table 9 reports the robustness test results that replace the core independent variable, wherein TMTEA1 still positively affects GI (p < 0.01).…”

“…With the acceleration of industrialization, urbanization, and globalization, environmental challenges, especially in developing countries like China, have become increasingly prominent (Ali et al, 2023;Hojnik and Ruzzier, 2016;Sherazi et al, 2024) [1][2][3]. Rising temperatures, escalating wastewater discharge, and depletion of resources pose significant threats to sustainable development (Munawar et al, 2022;Sharif et al, 2023) [4,5].…”

Towards energy sustainability: Exploring the nexus between global value chain participation and energy security in developing and developed countries

“…Moreover, Ha [ 18 ], Jabeen [ 19 ], and Ali et al [ 20 ], have focused on individual energy security indicators in the context of other variables like FDI, human capital, and political stability. Additionally, there are many more studies, e.g., Ali and Gniniguè [ 21 ] and Ali et al [ 22 ], that have focused on the GVCs participation and its role toward the protection of the environment, but they lack the focus on energy security.…”

“…This approach has resulted in a gap in understanding how these critical factors interconnect in developed and developing nations, with a specific emphasis on the contributions of human capital, foreign direct investment (FDI), and political stability. The aforementioned studies [ 3 , 13 – 22 ], have provided valuable contributions in the fields of energy security, innovation, and renewable energy. However, they have not comprehensively explored the complex relationship between energy security and GVC involvement by considering human capital, political stability, and FDI, specifically across a set of developed and developing countries.…”