This presentation is the final project for Treading for Development in the age of Global value chains.

1. WASTE AND ITS IMPLICATION
ON GLOBAL VALUE CHAINS
WUAVE TERWASE DANIEL
Presentation at Global value chains
Traning
Tuesday,8th September.2020

2. BACKGROUND
Global value chains break up the
production process across countries , with
firms specializing in specific task and stages
of production rather than producing the
whole product

3. GLOBAL VALUE CHAINS OFFERS
• Specialization
• Durable firm-to firm relationships
The two features
• Increase technology
• Increase knowledge transfer
• Increase access to capital
• Value chains refer to the steps businesses take to
produce a product or services and deliver it to
the consumer

4. FACTORS THAT INCREASE GLOBAL
VALUE CHAINS PARTICIPATIONS
• Endowments
Labor
Capital
Natural Resources
Geography
Market Size
Institutions
Policies

5. ATIVITIES OF GLOBAL VALUE CHAINS
• Firms engaged in global value chains to raise
productivity
• Raise income
• Generate waste
Breaking up the production processes of
complex products like cars and computers to
allows firms to specialize in the production of
simple parts and task generate huge waste in
the processes.

6. ENVIRONMENTAL ISSUES
SURROUNDING GLOBAL VALUE
CHAINS
• Scale Effect
• Composition Effect
• Techniques Effect

7. SCALE AND COMPOSITION EFFECT
Scale Effect
• Global value chains increase
economic activity.
• There’ s associated
expansion and emission .
• Global value chains
fragment the production
process across countries
they also generate more
shipping and more waste in
the aggregate.
Composition Effect
• Global value chains promote
treading and tasks, different
types of economic activity
relocate to different places
internationally and so change
patterns of production and trade.
• Countries with abundant natural
resources specialize in related
products and allows other
countries to preserve scarce
resources.
• The redistribution of dirty or
clean tasks may create
environmental benefits.

8. SCALE AND TECHNIQUE EFFECT
Scale Effect
• Global value chains are
associated with more shipping
trade.
• More waste is generated in
the aggregate than standard
trade.
• Global value promote more
efficiently production.
• Global value chains facilitates
the production of new
environmentally friendly
goods .
Technique Effect
• The environmental cost per unit
of production is technique effect.
• Global value chains promote
innovation and improvement in
production techniques that have
a lower environmental cost.
• The relational nature of global
value chains enable them to
adopt more of environmentally
friendly production technique
along etire value chains.

9. CARBON DIOXIDE GENERATION
EFFECT EXPLANATION
• Countries experiencing the
biggest increase in carbon
dioxide emission when they
entre limited manufacturing.
• When countries move to more
advanced manufacturing and
services or they becomes
centre of innovation, they
usually experience a decline in
production related carbon
dioxide emission .

10. CARBON DIOXIDE GENERATION
EFFECT EXPLANATION
• Carbon dioxide emission
decline as countries develop.
• Citizens demand more
stronger regulations and
production technologies get
cleaner.
• Scale effect of global value
chains trade is negative when
considering consumption
related emission and
degradation of environment
increases.

11. CARBON DIOXIDE GENERATION
EXPLANATION
• Production related
emission decreases as
citizen demanded for their
right.
• This makes technological
innovation on the
consumption and waste
side just as important as the
technological innovations
that is needed on the
production sides.
EFFECT

12. CHALLENGES OF SCALE EFFECT
SHIPPING OF GOODS
• The large transport footprint is parts and
component are shipped from country to country
as they are produced, assembled and consumed.
• Carbon dioxide emission associated with
international fright account for 7% of the total
carbon dioxide emission global as global value
chains trade grows.

13. SHIPPING OF GOODS
• Shipping accounts for more than 80% of world trade by
volume.
• 70% by volume is transported by sea.
• Shipping is the 7% largest emitter world wide.
• Harmful effects of shipping is beyond carbon dioxide.
• Shipping accounts for 15% of sulfur dioxide and nitrogen oxide
emission.
• This is because ships burn the dirtiest fuel possible.

15. REDUCTION AS SOLUTION TO
SHIPPING CHALLANGES
• International maritime organization is
committed to halving carbon dioxide by 2020 .
• Achieving zero emission should be the goal
shipping is hard to regulate because of its
mobile ship registration
• This would require significant improvements
in technology which need encouragement
through various policies such as carbon taxes,
low carbon fuel standards

16. ROAD AND RAIL
• Road and Rail transport accounts for most
emission in domestic value chains.
• Road fright account for 50% of carbon dioxide
emission.
• Rail is the lowest emitter of carbon dioxide
accounting for 3%.

17. CHALLENGE OF ROAD TRANSPORT

18. ELECTRONICS WASTE
• Electronics waste is the fastest growing waste
stream currently accounting for over 70% of
toxic waste in the United State landfills.
• Global value chains reduced the cost of
electrical devices so demand is such that
people can afford to replaced the use ones
arbitrary world wide.

20. PLASTIC AND MICROPLASTIC
• Plastics are the major challenge for the
environment.
• Global trade in plastic waste increases as
global value chains grow in 90s and 2000s.
• Shipping is also involved in plastics.
• Around 20% of plastic waste in the sea comes
from ship and other sea based sources.
• Recycling technologies are trying but the
effort is not yielding the much desired result.

21. PLASTIC AND MICROPLASTIC
• Agglomerations of plastic for example are
estimated to cover 4% of the world’s oceans
surface water expecting to increase more

22. EXTENDED PRODUCER RESPONSIBILITY
AS SOLUTION
• Global value chains model need to imbibed
extended producer responsibility so as to turn
post consumption waste into variable imputs.

23. ELECTRONICS (e-waste) SOLUTION
• Recoverable materials in 2019 where valued
at $55 billion.
• Circular value chains could be develop to
make use of these materials for the next
generation of products

24. TAKE AWAY
• What is most important to note about scale
effect of global value chains is that
• The expansion of production will continue to
exacerbate the environmental challenges
faced by the world.
• We need innovation combined with stronger
government regulations to reduce the
emission.

25. TAKE AWAY
• Waste generation and challenges will also
continue as global value chains continued to
evolve and grow.

26. THANKS YOU
• WUAVE TERWASE DANIEL

27. REFERENCES
• Aaditya Mattow,2020:Trading for
Development in Age of Global value chains,
The World Development Report 2020.
• David Cannon,2020:Impact of the
Environments