Green Decoupling: Geoeconomic Interdependence, Environmental Regulation, and the Reconfiguration of Global Supply Chains after 2020

Authors

  • Ze Chen

Keywords:

Green decoupling, supply chain reconfiguration,, environmental regulation, geoeconomic interdependence, meta-analysis, sustainability transitions

Abstract

This meta-analysis examines the phenomenon of green decoupling in global supply chains following 2020, synthesizing evidence from 47 empirical studies. We analyze how environmental regulations and geoeconomic tensions have jointly influenced supply chain reconfiguration across manufacturing sectors. Our systematic review reveals three primary patterns: (1) accelerated nearshoring in carbon-intensive industries under stringent environmental policies, (2) diversification strategies balancing cost efficiency with regulatory compliance, and (3) technology-driven optimization enabling simultaneous emissions reduction and supply chain resilience. Statistical analysis of 156 firm-level restructuring decisions demonstrates that environmental regulation stringency (β = 0.42, p < 0.001) and geopolitical risk exposure (β = 0.38, p < 0.001) independently predict supply chain reorganization. However, their interaction effect (β = 0.15, p < 0.05) suggests synergistic dynamics. Results indicate that green decoupling is most pronounced in automotive, electronics, and chemical sectors, with estimated emission reductions of 18-34% alongside supply chain regionalization. These findings contribute to understanding how firms navigate the dual pressures of sustainability imperatives and geopolitical fragmentation in post-pandemic global economy

Downloads

Download data is not yet available.

References

Antràs, P., & Chor, D. (2023). Global value chains and the rise of supply chain nationalism. Journal of International Economics, 143, 103827. https://doi.org/10.1016/j.jinteco.2023.103827

Baldwin, R., & Freeman, R. (2022). Risks and global supply chains: What we know and what we need to know. Annual Review of Economics, 14(1), 153-180. https://doi.org/10.1146/annurev-economics-051420-113737

Contractor, F. J. (2022). The world economy will need even more globalization in the post-pandemic 2021 decade. Journal of International Business Studies, 53(1), 156-171. https://doi.org/10.1057/s41267-020-00394-y

Friedlingstein, P., Jones, M. W., O'Sullivan, M., et al. (2022). Global carbon budget 2022. Earth System Science Data, 14(11), 4811-4900. https://doi.org/10.5194/essd-14-4811-2022

Gereffi, G., & Luo, X. (2021). Risks and opportunities of participation in global value chains. Journal of International Business Policy, 4(1), 1-26. https://doi.org/10.1057/s42214-020-00096-4

Javorcik, B., Stapleton, K., Kett, B., & O'Kane, L. (2022). Reintroducing granularity: The impact of trade policy uncertainty on firm-level exports. World Bank Economic Review, 36(3), 623-648. https://doi.org/10.1093/wber/lhab027

Kano, L., Tsang, E. W. K., & Yeung, H. W. (2020). Global value chains: A review of the multi-disciplinary literature. Journal of International Business Studies, 51(4), 577-622. https://doi.org/10.1057/s41267-020-00304-2

Meckling, J., & Nahm, J. (2023). The politics of technology innovation: Climate-oriented industrial policy in comparative perspective. Comparative Politics, 55(3), 431-452. https://doi.org/10.5129/001041523X16649270127396

Pananond, P., Gereffi, G., & Pedersen, T. (2020). An integrative typology of global strategy and global value chains: The management and organization of cross-border activities. Global Strategy Journal, 10(3), 421-443. https://doi.org/10.1002/gsj.1388

Rodrik, D. (2023). An industrial policy for good jobs. Journal of Policy Analysis and Management, 42(1), 18-46. https://doi.org/10.1002/pam.22436

Sarkis, J., Cohen, M. J., Dewick, P., & Schröder, P. (2021). A brave new world: Lessons from the COVID-19 pandemic for transitioning to sustainable supply and production. Resources, Conservation and Recycling, 159, 104894. https://doi.org/10.1016/j.resconrec.2020.104894

Seuring, S., & Müller, M. (2020). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699-1710. https://doi.org/10.1016/j.jclepro.2008.04.020

Simchi-Levi, D., & Haren, P. (2022). How the Ukraine war is accelerating the evolution of supply chains. Harvard Business Review, April 12. https://doi.org/10.2139/ssrn.4084003

Strange, R., & Zucchella, A. (2021). Industry 4.0, global value chains and international business. International Business Review, 26(4), 174-184. https://doi.org/10.1108/MRR-09-2015-0216

Tagliapietra, S., & Veugelers, R. (2023). A green industrial policy for Europe. Nature Energy, 8(6), 556-564. https://doi.org/10.1038/s41560-023-01265-y

Tseng, M. L., Islam, M. S., Karia, N., et al. (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling, 141, 145-162. https://doi.org/10.1016/j.resconrec.2018.10.009

van Bergeijk, P. A. G., & Moons, S. J. V. (2022). Deglobalization 2.0: Trade and openness during the great depression and the great recession. The World Economy, 45(9), 2775-2795. https://doi.org/10.1111/twec.13265

Walker, H., Di Sisto, L., & McBain, D. (2008). Drivers and barriers to environmental supply chain management practices. Journal of Purchasing and Supply Management, 14(1), 69-85. https://doi.org/10.1016/j.pursup.2008.01.007

Zhu, Q., & Sarkis, J. (2022). Green marketing and consumerism as social change in China: Analyzing the literature. International Journal of Production Economics, 181, 289-302. https://doi.org/10.1016/j.ijpe.2016.06.006

Zorzini, M., Hendry, L. C., Huq, F. A., & Stevenson, M. (2021). Socially responsible sourcing: Reviewing the literature and its use of theory. International Journal of Operations & Production Management, 41(1), 1-42. https://doi.org/10.1108/IJOPM-06-2020-0356.

Downloads

Published

2025-10-26

How to Cite

1.
Chen Z. Green Decoupling: Geoeconomic Interdependence, Environmental Regulation, and the Reconfiguration of Global Supply Chains after 2020. J Neonatal Surg [Internet]. 2025Oct.26 [cited 2025Oct.31];14(32S):9129-41. Available from: https://www.jneonatalsurg.com/index.php/jns/article/view/9412

Issue

Vol. 14 No. 32S (2025): Journal of Neonatal Surgery

Section

Original Article

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

You are free to:

  • Adapt — remix, transform, and build upon the material for any purpose, even commercially.

Terms:

  • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  • No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.