Study On The Impact Of FDI And Industrial Structure On Carbon Emission

The increase in carbon emissions has led to climate change such as air pollution,climate warming,and extreme weather,and has become a global concern.With the growth of China’s economy,FDI and industrial development have also led to a rise in China’s carbon emissions.In 2015,China’s carbon dioxide emissions amounted to 10.4 billion tons,accounting for 29%of the world’s total,exceeding the total carbon emissions of the United States and the European Union.Under the background of energy conservation and emission reduction and industrial structure upgrading,it is necessary to study the impact of FDI on China’s carbon emissions.This article will study the impact of FDI and industrial structure on carbon emissions from both theoretical and empirical perspectives.On the one hand,this paper systematically reviews the effects of FDI,the factors affecting carbon emissions,and the mechanism by which FDI affects carbon emissions through the industrial structure,and then concludes that FDI has direct expansion effect and indirect optimization effect on carbon emissions,that is,FDI can inhibit the increase of carbon emissions by promoting the upgrading of industrial structure.On the other hand,the carbon emissions were measured by the IPCC emission factor method,and the industrial structure level was estimated through the supply-demand balance framework.Three models were constructed based on three basic assumptions.Based on panel data of 30 provinces in China during 1997-2015,Systemic GMM estimation method was used for overall sample regression and subsample regression,and the stability assessment was performed by replacing the estimation method,replacing explanatory variables,and replacing the interpreted variables.The results show that:Both FDI and industrial structure promote the increase of carbon emissions,while FDI inhibits the increase of carbon emissions through the upgrading of industrial structure.At the same time,the energy structure,energy consumption level,population size,urbanization rate,and openness to the outside world have all contributed to the increase in carbon emissions.Finally,based on the research conclusions of this paper,we try to put forward corresponding policy recommendations for China’s introduction of FDI,industrial structure upgrading and carbon emission reduction.