Input servitization, global value chain, and carbon mitigation: An input-output perspective of global manufacturing industry

As an emergent pattern of integration between the manufacturing and service industries, manufacturing servitization has become a global trend. While studies have explored the eco-friendly characteristics of servitization, most have overlooked the roles of global value chains (GVCs) in transmitting i...

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Bibliographic Details
Published in:Economic modelling 2022-12, Vol.117, p.106069, Article 106069
Main Authors: Tang, Yiding, Zhu, Shujin, Luo, Yan, Duan, Wenjing
Format: Article
Language:English
Subjects:
Carbon emission intensity
Global value chains
Manufacturing servitization
Mediating effect test
Quantile regression
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Summary:As an emergent pattern of integration between the manufacturing and service industries, manufacturing servitization has become a global trend. While studies have explored the eco-friendly characteristics of servitization, most have overlooked the roles of global value chains (GVCs) in transmitting its carbon mitigation effects. Using cross-country industrial panel data collected from the global manufacturing industry between 2000 and 2014, this study empirically analyzes the multidimensional effects of input servitization on manufacturing carbon emissions from the input-output perspective, with attention to the mediating roles of GVCs in the servitization-emission nexus, including the underlying mechanism and transmission channels. Our results show that the carbon abatement effects of servitization are heterogeneous across different emission intensities. Further, GVC participation implicitly counteracts the carbon abatement effects of servitization, wherein backward GVC participation plays a dominant role. We therefore propose that servitization is a feasible path for coordinating high-quality economic development and resource/environmental constraints. •We examined the multidimensional impacts of servitization on manufacturing emissions.•Servitization's mitigation effects are heterogeneous pursuant to emission intensity.•GVCs implicitly counteract the carbon abatement effects of servitization.•Backward GVC division plays a dominant role in the counteracting process.•Servitization can coordinate economic development and environmental constraints.
ISSN:0264-9993
1873-6122
DOI:10.1016/j.econmod.2022.106069