Handbook on Global Value Chains
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Handbook on Global Value Chains

Edited by Stefano Ponte, Gary Gereffi and Gale Raj-Reichert

Global value chains (GVCs) are a key feature of the global economy in the 21st century. They show how international investment and trade create cross-border production networks that link countries, firms and workers around the globe. This Handbook describes how GVCs arise and vary across industries and countries, and how they have evolved over time in response to economic and political forces. With chapters written by leading interdisciplinary scholars, the Handbook unpacks the key concepts of GVC governance and upgrading, and explores policy implications for advanced and developing economies alike.
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Chapter 19: Environmental upgrading in global value chains

Valentina De Marchi, Eleonora Di Maria, Aarti Krishnan and Stefano Ponte

Abstract

Responding to stakeholder pressure, firms are increasingly challenged to reduce their environmental impacts. This chapter reviews the potential upgrading trajectories for firms engaged in global value chains (GVCs) to effectively reduce the impacts on the environment of all activities linked to their products - not just those that are carried out in house - and the major drivers of these investments. We also examine the role of global lead firms in fostering the greening of GVCs and the different governing approaches that they have adopted. Furthermore, we look at different forms of supplier agency in these processes, both in the Global North and the Global South. Finally, we identify the key challenges related to the reduction of environmental impacts along GVCs and discuss limits and opportunities for the joint achievement of economic and environmental outcomes.

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