Carbon neutrality along the global value chain: an international embedded carbon network analysis

Using the value-added method in the global input-output framework, embedded carbon transfers between economies are measured. Then, the international embedded carbon network (IECN) models are constructed and analyzed to reveal the real pattern of the IECN. Influential factors of the IECN are further explored with Quadratic Assignment Procedure (QAP). The main findings are as follows: first, the IECN has the characteristics of small world and scale-free. Developed economies led by the USA have high centrality indicators and always occupy the core position in the network; the network position of China and India has risen significantly with different network characteristics. Second, the subgroup relationships of the carbon network implied by international trade are becoming more and more complex and diverse, economies' participation in the global carbon chain is gradually increasing, and the number of edge nodes are decreasing. Third, the results of QAP analysis show that in addition to the negative impact of geographical distance on embedded carbon transfers between economies, inter-country trade agreement relations, differences in industrial structure, energy intensity, environmental regulation, economic size, and population size have a positive impact on embedded carbon transfers between economies. These findings can provide important practice implications for the global carbon neutrality.