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How embodied carbon in trade affects labor income in developing countries
Shu-Hong Wang1, Zheng-Zheng Li2, Malin Song3
1School of Economics, Ocean University of China, Qingdao 266100, PR China; Institute of Marine Development, Ocean University of China, Qingdao 266100, PR China.
The Science of the Total Environment
|April 8, 2019
Summary
International trade impacts developing nations
Area of Science:
- Environmental Economics
- Global Value Chains
- Labor Economics
Background:
- International trade increasingly separates production and consumption, leading to the transfer of carbon emissions.
- Embodied carbon emissions in trade significantly affect labor income share in developing countries.
Purpose of the Study:
- To investigate the relationship between carbon emissions and labor income share within global value chains.
- To analyze the impact of intermediate product imports and exports on labor income share.
Main Methods:
- Analysis of embodied carbon emissions in international trade.
- Classification of 57 sectors into 7 main industries.
- Empirical analysis of trade data and labor income share.
Main Results:
- Developing countries show a negative relationship between trade and labor income share, and a positive one with embodied carbon emissions.
- Labor-intensive exports and technology-intensive imports increase labor income share.
- Technology-intensive exports and labor-intensive imports decrease labor income share.
- Upgrading women's employment structure boosts labor income share in host countries.
Conclusions:
- Developing countries can enhance labor income share via technology-intensive imports and labor-intensive exports.
- Global innovations in science and technology are crucial for reducing embodied carbon emissions and achieving sustainable development.
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