GEAR members Mateo Ortiz, Maria Ángeles Cadarso and Luis Antonio López achieve a new publication on the global supply chains of multinational enterprises, this time in collaboration with our colleague Xuemei Jiang of Capital University of Economics and Business (Beijing, China).

In the paper entitled “The trade-off between the economic and environmental footprints of multinationals’ foreign affiliates”, the authors trace the CO2 emissions and value added generated along the global supply chains of multinationals and quantify the trade-offs between their economic benefits and environmental impacts. They found that value added and ownership are concentrated in developed countries, while CO2 emissions are mostly released in developing countries.

The article also provides comparisons between the economic-environmental performance of multinationals and domestic-owned companies. In this respect, it finds that foreign affiliates in OECD countries show higher CO2 intensities and carbon leakages than the domestic firms in the same countries.

We strongly encourage you to read this great article on a very interesting topic. We hope you like it!