Czechia's Role in Global Value Chains and Its Greenhouse Gas Footprint

Tereza De Castro
Prague University of Economics and Business

Abstract

This study aims to investigate the impact of Czechia’s participation in global value chains (GVCs) on its greenhouse gas emissions (GHG). The Czech Republic, known for its export-oriented economy and strong industrial tradition, holds one of the world’s highest rates of GVC participation. Its relatively strong backward linkages show a dependence on imported intermediate inputs, indicating a relatively higher share of GHG emissions embedded in its imports. Given the globally intensified decarbonization efforts and net-zero targets, the GVC framework becomes essential for understanding the relationship between international trade and GHG emissions. This paper builds on existing literature examining the relationship between GVC participation and GHG emissions, which is typically found to be positive. We evaluate sectors with the most significant environmental impact regarding GHG emissions and value added embedded in exports in Czechia. To analyze global value chains and their environmental impacts from 1995 to 2020, we employ Environmentally Extended Input–Output (EEIO) models.

Presentation