Research On Carbon Emission Effect And Influence Mechanism Of Foreign Investment In China

The relationship between foreign direct investment(FDI)and environmental pollution has always been a hot topic for the government and academia.As the driving force of China’s economic development,FDI not only provides sufficient capital support for China’s economic growth,but also provides opportunities for China to adopt advanced environmental protection technology.As an important goal of China’s economic restructuring,carbon emission reduction is an effective driving force for China’s highquality economic development.At present,China’s economy is changing from the pursuit of extensive growth of speed to the pursuit of green development of environmental efficiency,and promoting high-quality economic development has become the main theme at present and in the future.The report of the 19 th national congress pointed out that "we should create more material and spiritual wealth to meet the people’s growing needs for a better life,and also provide more high-quality ecological products to meet the people’s growing needs for a beautiful ecological environment".The Chinese government has also made it clear that it needs to increase the attraction of foreign investment and expand the opening-up at a higher level to effectively control the total amount of carbon emissions.At the same time,in order to practice the concept of green development,the 18 th National Congress clearly proposed to implement the carbon emission trading system,and the 19 th national congress once again stressed and said to steadily promote the construction of the national carbon emission trading market.Therefore,through the introduction of foreign investment to promote development and improve the ecological environment,it is undoubtedly of great practical significance for China to achieve the goal of high-quality economic development.This paper analyses the mechanism of the impact of FDI on China’s carbon emissions,and examines the effectiveness of the emission reduction effect of the carbon emission trading system.Based on China’s Provincial Panel Data from 2004-2016,using dynamic spatial panel model and system generalized method of moments,and then constructs mediating effect model.Using energy intensity as a mediator,and carbon emission trading as a moderator for empirical research.Research Finding:(1)FDI does not produce the expected emission reduction effect,and the “Pollution Heaven Hypothesis” is valid in China.(2)FDI can not only directly aggravate carbon emissions,but also promote carbon emissions by indirectly boosting energy intensity.(3)The establishment of a carbon emission trading system not only has a significant direct effect on controlling carbon emissions,but also effectively curbs the increase in emissions directly caused by FDI.However,it has no significant effect on the increase in FDI emissions caused by energy intensity.Research Innovation: Standardize the mechanism of FDI on carbon emissions.Incorporate FDI,energy intensity and carbon emissions trading system into a unified analytical framework,considering the spatial and temporal characteristics of carbon emissions,the mediation effect of energy intensity in FDI’s impact on carbon emissions and the moderating effect of carbon emission trading system are examined.Based on the research conclusions of this paper,the main policy recommendations are as follows: First,in the spatial dimension,there is a significant spatial positive correlation of inter-provincial carbon emissions in China.To this end,it is necessary to break regional administrative monopolies and adopt inter-regional joint prevention and joint control.Model;in the time dimension,China’s carbon emissions have pathdependent characteristics and "snowball effect",and long-term governance is the key.Second,local governments need to screen the degree of environmental friendliness of foreign capital introduction,raise the environmental standards of foreign capital introduction,give full play to the technological advantages and "demonstration effects" of foreign capital in energy conservation and emission reduction,and effectively absorb foreign technology and knowledge spillovers.Promote foreign investment to play an active role in energy conservation and emission reduction.Third,China’s high energy intensity is an important factor leading to excessive carbon emissions.The energy structure dominated by coal has undoubtedly become the culprit of excessive greenhouse gas emissions represented by carbon dioxide.Fourth,carbon emissions trading has a significant negative impact on carbon emissions.Environmental regulation based on market mechanisms can effectively curb the continuous rise of carbon emissions.Therefore,it is necessary to establish a carbon emission trading system as the core emission reduction system.The mechanism’s environmental regulation policy is a powerful means to solve China’s environmental pollution problems in the future.