Longer global value chains, larger biodiversity loss?

Abstract

Based on the MRIO model framework and International Union for Conservation of Nature Red List of Threatened Species data, this study analyses the impacts of two global value chain embeddedness patterns (forward and backward) on trade-induced biodiversity footprints of 60 countries/regions between 2007 and 2021. The findings reveal that forward GVC participation, which involves exporting intermediate products, reduces biodiversity losses, mainly via technology spillovers, cost reduction, and resource misallocation mitigation. Further analysis indicates that developed countries often outsource energy-intensive production to developing countries through GVC, shifting environmental responsibilities. Enhancing a country's position in the GVC reduces biodiversity losses from trade, particularly for resource-importing countries, provided that both forward and backward participation exceed the average level. For developed countries, forward GVC participation reduces biodiversity losses in sectors like oil, chemicals, heavy metals, electrical equipment, and machinery. In contrast, in developing countries, resource-intensive sectors such as agriculture, forestry, fishing, mining, and traditional services see reduced biodiversity losses in exports but experience negative effects in sectors like transport equipment, manufacturing, and recycling. These findings suggest that governments should address trade-induced biodiversity footprints by optimizing GVC participation patterns, improving their position within the GVC, and advancing energy-saving, emission-reducing technologies and clean industries, contributing to the achievement of the Aichi Targets.

Biodiversity is intrinsically linked to human well-being, serving as a crucial foundation for human survival and development (Girardello et al., 2019). As a result, it has garnered significant attention from the international community. A recent study conducted by the World Wide Fund for Nature (WWF) revealed that between 1970 and 2018, the monitored populations of wildlife worldwide have decreased by 69 % (Secretariat of the Convention on Biological Diversity, 2020). Given that over half of