Foreign Direct Investment In Energy Efficiency In China

Energy efficiency has attracted much attention in the context of the obvious contradiction between global energy supply and demand these years. Some scholars have found that foreign direct investment (FDI) has impact on energy efficiency.China's actual use of foreign investment has been growing since the reform and opening up. Scholars have studied and proved that foreign direct investment improved the whole energy efficiency in China. However, China is a big country with vast territory and regional differences. Provinces in China have different FDI and energy efficiency. Therefore, the author believes that it is necessary to found the relations between FDI and energy efficiency in different regions.This paper has a research on relevant theories, and then, describes China's FDI and energy efficiency with a large number of charts from 1997 to 2008. A panel data model is used to estimates the relations between FDI and energy efficiency in different regions. It finds that the directions of FDI'impact on energy efficiency in provinces are different. In the end, the author presents some policy recommendations according to the analysis.