Beyond borders: Unveiling trade-attributed greenhouse gas inequality under global value chains

Understanding trade-attributed greenhouse gas (GHG) inequality from a global value chain (GVC) perspective is essential for advancing global sustainability. This study examines the distribution and influencing mechanism of trade-attributed GHG inequality across 49 economies from 1995 to 2022. We integrate a GVC decomposition model with an optimized regional environmental inequality index to assess the trade-attributed GHG inequity. The gravity model is employed to explore the relationship between this inequality and different GVC trade types. Through a structural decomposition analysis, we further unveil the drivers of GHG emissions per value added in crucial GVC trade types to determine effective pathways for alleviating the inequality. Our analysis reveals the following findings: (1) Trade-related GHG emissions and value added are significantly unequally distributed among economies, with this imbalance being more severe between GVCs. (2) Trade-attributed GHG inequalities demonstrate widespread globally and exhibit a worsening trend, with particularly pronounced disparities emerging in trade between developing economies, notably China, India, and Russia. (3) Exports and imports through complex GVCs are the most crucial GVC trade types for exacerbating the inequality. Imports through traditional trade represent another crucial GVC trade type. (4) Reducing GHG intensity plays a vital role in alleviating the inequality. Efforts should focus on targeting specific drivers in crucial GVC trade types to reduce their GHG emissions per value added. This study contributes to the growing body of literature on trade-attributed GHG inequality and provides valuable insights for policymakers working towards more equitable and sustainable global trade practices within the context of GVCs.