An Empirical Research Of The Impact Of FDI On Carbon Emissions In The Chinese Eastern Region

Since the reform and opening, environmental issues has aroused more and more worldwide attention, while the related issues arising from the increase of the carbon emissions are becoming the focus of environmental problems. At present, China has become the world’s largest emitter of carbon dioxide. And the carbon emissions in Chinese eastern region account for more than half the total ones of the country, meanwhile, China shoulders the huge domestic and international pressure of reducing carbon emissions. And the eastern region has become a gathering place for foreign direct investment, the total amount of foreign direct investment in the eastern region has accounted for 80% of the national total. While the introduction of FDI promotes the rapid economic development of eastern region in China, whether it promotes the increase of the emissions of carbon dioxide or it could help to reduce the carbon emission needs to be verified.Based on the existing research, this paper chooses the 11 provinces and cities in eastern China as the research object, and firstly analyzes the current situation of FDI and the status of the carbon emissions in eastern region, then discusses the influence mechanism of FDI on carbon emissions. Secondly, researcher has done the empirical analysis about the impact of FDI on four aspects of carbon emissions in the eastern region by establishing a simultaneous equation model, including the scale effect, structure effect, technological effect and environmental regulation effect. And then it is the regional comparative analysis about the three different places of the eastern region in China:the Pearl River Delta region, the Yangtze River Delta region and the Bohai rim region. The results shows that, overall, the FDI inflows can reduce carbon emissions in the eastern region, while there are differences between the three urban agglomerations in the eastern region:FDI inflows have caused the increase of carbon emissions in the Bohai rim region, which is beneficial to reduce carbon emissions in the Pearl River Delta region and the Yangtze River Delta region. Finally, this paper, according to the empirical results, presents the corresponding recommendations of targeted policy for the eastern region and the three regions including the Bohai rim, the Pearl River Delta and the Yangtze River Delta from the scale of foreign capital, the structure of foreign capital, technology and environmental regulations.