Study On The Impacts Of FDI On The Anhui’s Energy Intensity

The impact of foreign direct investment in China has two sides, on the one hand, foreign direct investment continues to flow into the objectively played the promoting effect of investment scale and economic scale expansion, on the other hand, foreign direct investment large inflows to high energy consumption, high pollution industry has brought the noticeable problems such as environmental pollution, energy consumption. At the same time, the energy is the foundation of economic and social development. How to improve the energy efficiency is an important research topic in the current society.To enhance the efficiency of energy utilization, it is the objective requirement of the scientific concept of development, is advantageous to the transformation of the mode of economic development and alleviate the contradiction between supply and demand of energy, is the inevitable choice to realize sustainable development economic.Anhui, as an important province of central, the energy consumption and energy efficiency problem are very prominent. The total energy consumption is too large, the energy utilization efficiency is not high problem long plagued economic development and restructuring of Anhui. At the same time, with the further development of the export-oriented economy of Anhui Province, the province’s use of foreign direct investment level and scale is also increasing. How to use foreign direct investment reasonable is becoming more and more important. Therefore, in Anhui Province as the research object, to explore the influence of foreign direct investment on energy intensity in Anhui Province, has the important practical significance to find a new way to make better use of foreign direct investment.This paper reviews the relevant literature on the impact of foreign direct investment in energy intensity. Then describes the mechanism of FDI impact on energy intensity, in introducing the mechanism draws Grossman and Kruger from the study of the environmental impact of trade practices, the impact of foreign direct investment in the energy intensity of the divided scale, structure effect and technology effect and mechanism of action elaborated three effects. After that, comprehensive analysis the status of foreign direct investment in Anhui Province and the energy intensity. In the empirical analysis, this paper using Lagrangian decomposition factors for 1995-2013 in Anhui Province in energy intensity decomposition, estimates, factors found in Anhui Province Energy intensity, the structure of share increased energy intensity; the share of reduced energy efficiency contribution of strength, and the share is much lower than the efficiency of the structure of the share. Finally, the author of the article gives some conclusions policy recommendations, including: reasonable guide foreign direct investment flows from investment, regional, approach, optimizing the industrial structure, improve energy efficiency and reduce energy intensity; strengthen and improve foreign direct investment in the construction of environmental legislation system; optimizing the layout of the province’s energy.