GVC IMPACTS ON ARGENTINA’S CARBON EMISSIONS: DECOMPOSITION ANALYSIS

This paper examines the environmental impact of Argentina’s participation in Global Value Chains (GVCs) from 1995 to 2020, focusing on carbon emissions. Using decompsition analysis and fixed-effects regression, we find that GVC participation increases emissions, primarily due to economic expansion (scale effect), especially through backward linkages. However, improvements in energy efficiency and shifts toward less carbon-intensive sectors partly mitigate this effect. Emissions are concentrated in agriculture and manufacturing, while services have minimal impact. Instrumental variable checks confirm robustness. This study recommends promoting green technologies, stricter regulations, and international cooperation to align GVC participation with sustainability goals in developing economies.