A Research On The Influence Of FDI On Carbon Emission In China:Theory And Demonstration

At present, the global CO2production of China has accounted for23%of the world in2011from only7.7%in1978, surpassing that of the United States, and bringing China to be the world’s biggest producer of carbon dioxide (CO2) and therefore faces a huge pressure on reducing carbon dioxide emissions. From a practical perspective, the root causes of the high-speed growth of carbon emission in China are mainly related to the traditional development model of China’s energy-hungry economy, the coal-based energy consumption structure, the crytic carbon emission in China’s export trade, and an extensive carbon emission transfer as a result of attracting the FDI. Nowadays, the low-carbon ecomony has increasingly found its status in countries all over the world, as a best way of dealing with the economic crisis and transforming the patterns of economic growth, which attracts a worldwide attention to the energy conservation and emission reduction problems. Nevertheless, those researches most focus on the ecomomic growth-mode, the energy consumption structures and the influences of the carbon emission in export trades, but rarely on the inflences of the carbon emission in FDI.For this reason,this paper based on the theory of the carbon emission in FDI, combining with the characteristics of investment of China gives the theory and empirical analysis of the carbon emissions effect on the introduction of FDI to our country. Based on the panel data of twenty-nine provinces in Chinese Mainland, a fixed effects model was constructed with variable coefficients for regression analysis in this article, from the perspective of scale effects, structural effects, technology effects and the effects of environmental regulations. Then the author conducts the empirical analysis of the effects on carbon emission of the FDI in our country, using cross section weighted generalized least square method (EGLS). The empirical results get the following results:the twenty seven in twenty nine province’s coefficient of scale effect of FDI is positive, indicating that FDI has added the carbon dioxide emissions in each province through the scale effects;twenty two in twenty nine province’s coefficient of structure effect of FDI is also positive, indicating that the increasing proportion of secondary industry will aggravate carbon emission in our country;the half of the coefficient of technology effects of FDI is negative, indicating that the carbon emission has reduced in our country through FDI technical spillovers; the empirical estimation results of the coefficient of environmental regulation effect of FDI prove that environmental regulation can reduce carbon emission. In a word, the overall estimation results are roughly consistent with the theory expects.Based on the theorical and empitical analysis this ariticle puts forward specific measures and policy recommendations respectively from the respects of scale effects, structural effects, technology effects and the effects of environmental regulations on carbon emission of FDI of China.