The Coupling Synergistic Effect Analysis of Global Value Chain Embedding and Carbon Emission Reduction in China

Standardization of Index

The range standardization method is adopted to standardize the original data and eliminate the influence of data size, dimension and content-crossing direction. Assuming that the numble of objects to be evaluated is m, and the numble of evaluation indexes is n in the evaluation system, among them i= 1,2... m; j= 1,2... , n. For the forward and backward indicators, their standardized calculation formulas are shown in (1) and (2) respectively:

Positive index:

$$ y _ {i j} = \left(x _ {i j} - \min x _ {j}\right) / \left(\max x _ {j} - \min x _ {j}\right) \tag {1} $$ Negative index:

$$ y _ {i j} = \left(\max x _ {j} - x _ {i j}\right) / \left(\max x _ {j} - \min x _ {j}\right) \tag {2} $$ Where, max x_j、min x_j represent the maximum and minimum values of indexes respectively.

Calculation of Index Entropy

m $$ = - 1 / \ln m \sum_ {i = 1} ^ {m} p _ {i j} \ln p _ {i j} \quad (1 \leq j \leq n) \tag {3} $$

1 1/ ln ln j ij ij i H m p p

m $$ = x _ {i j} / \sum_ {i = 1} ^ {m} x _ {i j}, \mathrm {a n d} \mathrm {m} $$

1 / ij ij ij i p x x

Where, Hjis the entropy of indicator j, represents the number of industries, 0≤≤1.

Determination of Index Weights

n ( ) ( ) 1 1 / 1

$$ = \left(1 - H _ {j}\right) / \sum_ {j = 1} ^ {n} \left(1 - I\right) $$

j j j j w H H

（ 4） wj satisfies two conditions：0≤ wj ≤1 and .

Calculate the integrated index of global value chain and carbon emission reduction

According to the previously calculated standardized data y_ijand the index weight calculated by entropy weight method w_j, the multi-objective linear weighting method is adopted to calculate the environmental composite index of global value chain embedding and carbon emission reduction:

n $$ = \sum_ {j = 1} ^ {n} w _ {j} y _ {i j} \tag {5} $$

i j ij j E w y

1 n $$ L = \sum_ {j = 1} ^ {n} w _ {j} y _ {i j} \tag {6} $$

i j ij j GVC w y

1 Ej, GVCi are between 0 and 1. The larger the 𝐸𝑖 is, the better the carbon emission reduction results of industry i, and the worse the vice versa: the larger the 𝐺𝑉𝐶𝑖 is, the deeper the industry i is embedded in the global value chain and on the contrary, the shallower the industry i is embedded.

Analysis of the coupling coordination degree between global value chain and carbon emission reduction

Coupling refers to the interaction of two (or more) systems through various influences.

( ) ( ) ( ) ( ) ( ) { }

$$ C = \left\{f (U) g (E) / \left[ \left(f (U) g (E)\right) / 2 \right] ^ {2} \right\} ^ {1 / 2} \tag {7} $$ $$ \mathrm {T} = \alpha \mathrm {f} (\mathrm {U}) + \beta \mathrm {g} (\mathrm {E}) $$ （8） $$ \mathrm {D} = \sqrt {\mathrm {C T}} \tag {9} $$ Where, f(U) represents the global value chain subsystem, g(E) represents the carbon emission subsystem, C represents the coupling degree between global value chain embedded and carbon emission reduction, T represents the integrated coordination index of global value chain embedded and carbon emission reduction, D represents the coupling coordination degree of global value chain embedded and carbon emission reduction, and and respectively represents the contribution share of global value chain embedded and carbon emission reduction.

Construction of evaluation index system

This paper draws on the existing literature and builds the global value chain system and carbon emission reduction system following the principles of systematic, scientific and data availability. As shown in Table 1, the main data are from UIBE GVC database, and the data on carbon dioxide emissions by industry are from the carbon emission data supplemented by WIOD in 2019. In this paper, we selected the 56 industries panel data of China from 2005 to 2014 as samples, and classified and merged the industries into 21 sub-sectors, in order to conducting an empirical study on the coupling coordination relationship between global value chain embeded and carbon emission reduction.

Referring to the paper of LV Yanfang [14] to classify the development stages and levels of coupling coordination, we divide the degree of coordination into five stages, as shown in Table 2.

Comprehensive Index Analysis of Global Value Chain Embedded and Carbon Emission Reduction

Figure 1 shows the average composite index of global value chain embedded and carbon emission reduction for 21 industries from 2005 to 2014. It can be seen from the GVC composite index that the GVC composite index of electronic communication equipment manufacturing is higher compared with other industries, while the GVC composite index of food and tobacco, pharmaceutical manufacturing and construction is lower. This indicates that the electronic communication equipment manufacturing industry has a high degree of GVC embedded, large export added value and strong value-added ability, while the food and tobacco industry, pharmaceutical manufacturing industry and construction industry have low participation and value-added ability in GVC. As can be seen from the comprehensive carbon emission reduction index, all industries maintain a relatively high level, indicating that the overall carbon emission reduction results of the country are good. However, power, gas and water production and supply industries, electronic communication equipment manufacturing carbon emission reduction comprehensive index is relatively low. The reason may be that firepower power generation is still the most main source of power in China, and China is a major manufacturer of electronic components, leading to the result that the carbon emission and the trade implied carbon emission of these two industries are both large, and composite index of carbon emission reduction are both low.

Analysis of Coupling Coordination Degree between Global Value Chain and Carbon Emission Reduction

It can be seen from Table 3 and Table 4 that the coordination degree of global value chain embedded and carbon emission reduction coupling of various industries presents a relatively stable and generally rising trend from 2004 to 2014. Among them, the overall rising industry includes the construction industry, other manufacturing products and scrap industry, and other industries are relatively stable. When different types of contribution shares are selected, the coupling coordination degree results of type 1 and type 2 are basically the same, and the coupling coordination degree of each industry of type 3 is generally higher. However, in terms of China’s current situation, the realization of the goal of “dual carbon” and the promotion of various industries to move towards the middle and high end of the global value chain promote and restrict each other, and the two are in the same important position, so we select the contribution share of type 2. In type 2, most of the industries are in the moderate coordination stage, and the mining industry is in the advanced coordination stage while the construction industry is in the primary coordination stage. With the exception of the electronic communication equipment manufacturing industry, other industries are lagging behind in the global value chain. This is because technological progress pushes all industries to climb to the middle and high end of the global value chain, but developed countries hold key technologies in their hands, which makes China difficult to climb to the high value-added links, thus making it difficult to effectively coordinate the global value chain embedding and carbon emission reduction.

Coupling Coordination Analysis under the Density of Factors in Different Industries

According to the weight determined by the entropy method and the calculation method of the coupling coordination degree, the coupling coordination degree of the three factor intensive industries from 2005 to 2014 was calculated. At the same time, the three industries with intensive factors were averaged over the years (as shown in Table 5), and the coupling coordination of carbon emission reduction and global value chain embedded was compared and analyzed. The 21 sub-sectors are divided into: 1) labor- intensive industries: agriculture, forestry, animal husbandry, fishery, food and tobacco, textile industry, wood processing and furniture manufacturing, paper and printing industry, wholesale and retail industry, accommodation, catering industry, transportation, storage and postal industry, construction; 2) Capital-intensive industries: mining industry, non-metallic mineral products, other manufactured products and waste materials, machinery and equipment manufacturing, electrical equipment manufacturing, petroleum coking industry, electricity, gas and water production and supply industry, metal smelting industry; 3) Technology-intensive industries: chemical raw material manufacturing, pharmaceutical manufacturing, electronic communication equipment manufacturing, transportation equipment, other industries.

According to the results in Table 5, it can be seen that the coupling coordination degree of global value chain embedded and carbon emission reduction after averaging treatment shows the following characteristics: labor- intensive and technology-intensive industries are weaker than capital-intensive industries. From 2005 to 2014, the coupling degree of the three kinds of intensive industries showed a slow rising trend, among which the labor-intensive industry showed a zigzag change track of first rising and then falling, but generally belonging to the high-level coupling stage. Capital-intensive and technology-intensive industries grew steadily. In the past 20 years, three kinds of intensive industries have developed rapidly, but the labor- intensive industries showed the fastest growth, while the capital-intensive industries showed the slowest growth, and technology-intensive industries were in the middle.

Main Conclusions

There is a close interaction between global value chain embedded and carbon emission reduction. It is of great theoretical and practical significance to realize the coordination of the two between global value chain embedded and carbon emission reduction in the process of realizing the goal of “double carbon” and moving towards the middle and high end of global value chain. Based on the theory of coupling coordination, this paper establishes the evaluation index system of global value chain embedded system and carbon emission reduction system, calculates the comprehensive index of global value chain and carbon emission reduction by using the linear weighting method, and analyzes the development status of 21 subdivided industries under the intensity of different industries from 2005 to 2014, and draws the following conclusions:

First, due to the importance of the realization of the “two-carbon” goal and the industry’s move to the high end of the global value chain, we select the coupling coordination model of two systems that measure the same contribution share. However, under the three different contribution share types, the coupling coordination degree measured under Type 1 and Type 2 shows basically the same trend. According to Type 3, most industries are in the advanced coordination stage.

Second, most industries are in the moderate harmonized- lag in GVC stage, indicating that GVC are the key reason restricting the coordinated development of GVC and carbon emission reduction. Only the extractive industry was in the advanced coordination stage, and the construction industry was in the lower coordination stage. However, the coupling coordination degree of the construction industry maintained a steady rising trend from 2005 to 2014.

Third, from the perspective of the three kinds of factor intensive industries, there are obvious industrial differences in the degree of coupling between global value chain embedded and carbon emission reduction, and they are both in the moderate stage of coordination in the degree of coordination. From the coupling coordination data, it can be seen that the coupling coordination relationship of capital- intensive industries is the best, followed by capital-intensive industries and labor-intensive industries. The labor- intensive industry shows a tortuous trend of rising first and then declining, but the three kinds of industries are in a high level of coupling stage.

Countermeasures and Suggestions

Based on the above conclusions, the following countermeasures and suggestions are put forward: First, we need to focus on green development while moving up the global value chain. In the process of development of developing countries, development before governance is the main theme of their development, which will inevitably cause damage to the ecological environment. Therefore, in the future development mode, we should not only pay attention to the accumulation of innovation factors, but also improve the level of green technology in various industries.

Second, we should make use of inter-industry linkages to move to the medium-high end of the global value chain. We will give priority to developing industries with comparative advantages, fully strengthen the advantages of labor-intensive industries, and vigorously encourage the development of technology-intensive and capital-intensive industries. For technology-intensive industries such as pharmaceutical manufacturing and electronic communication equipment manufacturing, the government departments of developing countries should increase the investment in scientific and research to move towards the middle and high end of global value chain, and upgrade the technology of capital-intensive industries such as electrical equipment manufacturing and machinery equipment manufacturing, so that global value chain embedment and carbon emission reduction can develop in a coordinated way.