Global value chains, renewable energy investments and mineral resources trade: Implications for sustainable development goals in emerging economies.

Abstract

As economic structures become ever more integrated, global trade due to global value chains has undergone a profound transformation to allow participant members to excel on comparative advantage while encouraging economic and innovation integration. This research combines global value chains, mineral resource trade, renewable energy investments, economic growth and urbanization within an empirical model to investigate their association with climate change. Our research performs extensive theoretical and econometric analysis to reveal that global value chain participation, renewable energy investments and urbanization are key elements within sustainable development transformation, whereas mineral resources trade and economic development exacerbate environmental degradation. The current study further substitutes global value chain participation sub-components within empirical analysis to reveal that backwards and forward value chains ensure a structural sustainable development shift to aid compliance with environmental policies. Based on empirical outcomes, our research reports novel policy mechanisms to ensure climate change mitigation and sustainable development transition.