Frontier Advanced Seminar Series in Economics No. 21
Global Value Chains and World Pollution Emissions
Speaker: Prof. Ting JI (Central University of Finance and Economics)
Host: Prof. Xiangjun MA (Liaoning University)
Introducer: Prof. Miaojie YU (Liaoning University)
Time: April 13, 2023 (Thursday), 15:00-16:30 (UTC +08:00)
Venue: Room 317, Administration Building, Puhe Campus, Liaoning University
Online Venue: Tencent Meeting (Meeting ID: 3007551 6895)
Language: Mandarin/English
Abstract：We analyze theoretically and quantitatively the interactions between international trade and the environment in the context of Global Value Chains (GVCs), by incorporating pollution abatement and emissions into a multi-country-multi-sector structural gravity trade model with multi-stage sequential production. Based on this framework, we extend the classic pollution decomposition equation to include a novel stage effect, which reflects the impacts of an economy’s relative position in the global production chain on the environment. We find that including GVCs in the model completely reshapes how trade affects the environment. Particularly, including GVCs strengthens the power of environmental regulations as a source of comparative advantage at the sectoral level, and allows a new margin of international specialization, i.e., stage. However, environmental regulations are still a weak trade determinant compared with other forces such as productivity and trade costs. We simulate different levels of US-China trade decoupling in terms of production stages that are affected, and find that both countries lose in terms of production and trade, but tend to emit less.
Speaker Introduction: Ting JI is an Associate Professor from the School of International Economics and Trade at Central University of Finance and Economics, head of the Department of Trade Economics. He obtained his Ph.D. degree from UCLA in 2015, and his Bachelor’s degree in electronic information engineering from Tsinghua University in 2008. His research interests are China Economy, International Trade, and Economic Geography. His research has been published in the top journals such as the Journal of Public Economics and World Economy.
Speaker Introduction: Ji Hui, Associate Professor and Director of the Department of Trade Economics at the School of International Economics and Trade, Central University of Finance and Economics. Graduated from the University of California, Los Angeles (UCLA) in 2015 with a PhD in Economics; He graduated from Tsinghua University in 2008 with a bachelor's degree in electronic information engineering. My research focuses on the Chinese economy, international trade, and economic geography. The paper has been published in top domestic and international journals such as Journal of Public Economics and World Economy.
