Analysis Of The Effect Of Foreign Direct Investment On China’s Carbon Emission Performance

In the context of economic globalization,economic and trade exchanges between countries have become more frequent,and the transfer of pollution emissions involved in foreign direct investment has aroused heated discussions.Since the reform and opening up,my country’s opening to the outside world has continued to increase.The economic development momentum is strong.The abundant natural resources and labor resources have attracted more and more foreign investors.The amount of FDI has risen rapidly,providing strong support for my country’s social and economic development.But what follows is that my country’s carbon emissions are close to linear growth,and whether it has become a pollution paradise for foreign companies is a big controversy.China has been making continuous efforts to reduce CO₂ emissions.The report of the 19th National Congress of the Communist Party of China further listed climate change as an important non-traditional security threat in the world,which is enough to demonstrate its determination to reduce emissions.However,with the rapid advancement of industrialization and urbanization,CO₂ emissions remain high.How to control CO₂ emissions at a certain level while ensuring economic stability and rapid development is a top priority for China’s future development.Due to the increasing impact of FDI on economic growth,the unilateral emphasis on the economic benefits of FDI is contrary to my country’s concept of building an environmentally friendly society.Under the pressure of reducing emissions,it is important to explore how to use FDI to suppress CO₂ emissions.significance.Based on this,this article first conducts a calculation and analysis of the national and inter-provincial CO₂ emissions and the scale of FDI utilization,and conducts a preliminary analysis of the trends of the two.Secondly,according to Grossman’s theoretical ideas,based on the time series data from 1983 to 2019,a non-linear smooth transition model（STR）with the scale of FDI entry as the conversion variable is established to explore the impact of the scale of FDI entry on the national level on the per capita CO₂ emissions and CO₂ emissions intensity.Then build a dynamic panel model based on the classic EKC model,and use panel data from 1998 to 2017 to empirically analyze the non-linear effect of FDI entry scale on CO₂ emission performance from the provincial level.The results show:（1）There are two mechanisms for the impact of China’s FDI entry scale on CO₂ emissions performance:low and high.Under the low mechanism,the FDI entry scale and CO₂ emissions performance are negatively correlated,and under the high mechanism,the two are positively correlated,that is,there is a carbon-based mechanism of the optimal FDI scale for emission reduction targets.（2）In addition,increasing the R&D inventory and optimizing the industrial structure in a low-level mechanism have a positive effect on improving CO₂emission performance.However,the level of human capital,the degree of capital deepening,and the improvement of the level of economic development have a vicious pull on CO₂ emission performance.（3）When transitioning to a high mechanism state,increasing per capita GDP and human capital levels have shown a significant positive effect on CO₂emissions performance,and the adverse impact of capital deepening on CO₂emissions performance tends to weaken.（4）There is a non-linear"U"relationship between the scale of FDI entry and China’s CO₂ emission performance at the national level and in the eastern and central regions,but the scale of FDI entry corresponding to the"U"turning point is different.This relationship does not exist in the western region,and the scale of FDI entry and CO₂ emission performance show a simple linear relationship.（5）In the full-sample estimation results,the lagging items of CO₂ emission performance and the positive contribution of economic development level to carbon emissions are very significant,while the industrial structure,technology investment level,and human capital level generally contribute to per capita CO₂emissions（CO₂emission intensity）.The effect is benignly reduced.（6）At the grouping level,the degree of influence of various factors on CO₂emission performance and the direction of action have changed significantly.The low-carbon effect of increasing the proportion of the tertiary industry is not significant in the central region,and the increase in science and technology investment cannot be achieved in the western region.Unleashing the advantages of emission reduction is not conducive to the improvement of CO₂ emission performance.