A Research On The Environmental Effects Of Openness In Fujian Province

With the acceleration of economic globalization and the deterioration of global environmental problems, more and more attention is being paid to the environmental impact of openness. The potential link between economic opening-up and environment is shaping up. Fujian Province is increasingly opening to the world and its degree of dependence upon foreign trade and FDI inflow is very high. Although it has fruited rapid and sound development since China's entry into WTO, its environment is being polluted seriously. Based on this phenomenon, this paper studies the openness-emission nexus and explores how trade opening-up affects environment.Simultaneous equations about environmental pollution emphasize analyses on scale effect, technological effect and direct effect of trade opening-up on environment in Fujian Province. Its empirical results show the following implications. 1) Trade openness has a positive environmental effect on polluting indicators including industrial SO₂ and industrial waste water, that is, higher degree of trade openness leads to higher emissions and industrial SO₂ and waste water. 2) On the contrary, trade opening-up has negative effects on industrial smoke, industrial particle matter and industrial solid waste.Environmental Pollution Recursion Model is used to explore relationship between FDI and environment in Fujian Province and examines environmental impact of FDI, Pollution Haven Hypothesis, the EKC Hypothesis. Empirical results using this technique indicate that the effects of FDI on pollution effluents concentration can be summarized into two categories: On the one hand, FDI doesn't have significant impact on industrial smoke emissions and industrial solid waste. On the other hand, FDI negatively affects industrial SO₂, industrial particle matter and industrial waste water. In other words, FDI can improve the above three pollution effluent.