The fact still remains that any economy cannot do away with either domestic or global manufacturing activities just to protect its environmental conditions. Actually there is bound to be an increasing trend in such activities due to the enlargement of the population and the economy as well. In the background of these factors this study has analysed the impact of CO2 which is a major element in the determination of the environmental impact on global manufacturing by using 'Vensim' - a system dynamic model with appropriate simulations. The study has also used software 'EIO-LCA' and 'SimaPro' for estimating the CO2 emission for the lifecycle of a car and a mobile phone to emphasise the aim of this project. The operations of global manufacturers Toyota, Volkswagen and Nokia in the country of China are considered as case studies. The study concludes that there can be no effective balance between the positive and negative impacts of global manufacturing on the environment of the host country as the CO2 emissions far too outweighs the positive impacts.
Even though there are several greenhouse gases that cause the global warming in their respective proportions, the study had taken the emission of Carbon dioxide (CO2) for analysis since CO2 constitutes the major contributor to the environmental hazards. The case studies coupled with the simulation model demonstrate that the quantum of CO2 emissions from the global manufacturing more than outweighs the economic advantages resulting from such operations in the host countries. But it is evident that the manufacturing activities would continue to grow in magnitude because of the increased expectations of the emerging economies to grow in a rapid pace. This implies the production of more CO2 and more adverse impact not only on the domestic environment but also on the global environment by increasing the global warming which surely is a future disaster all the countries have to face.
It becomes obligatory for the nations to find a suitable and fitting solution to the issue as there can be no stoppage or reduction in the manufacturing activities just for the limited purpose of protecting the environment and save the depleting natural resources. Quite obviously it would be difficult to bring an equilibrium position where the positive effects being created by the manufacturing activities provide for and compensate the degradation to the environmental conditions in the country of manufacture. In order to arrive at a feasible solution for the issues connected with the environmental impact it is vitally important that magnitude of the problem is first ascertained. Hence the tools and models to assess the quantity of the gases emitted and monetizing the same assume relevance. Several studies and researches are being pursued in this direction to precisely estimate the quantity and monetary value of the problem.
Nevertheless since as found by this study it is difficult to arrive at a balance between the positive and negative impacts of global manufacturing the focus should be to attain an equilibrium that will facilitate the sustainability of the environmental conditions. There can be a two pronged approach to the issue. First one is to reduce the quantum of emissions of CO2. This possibly can be achieved by