Regional Analysis Of The Impact Of FDI And Clean Development Mechanism On China's Eastern And Western Carbon Emissions

In the course of the world economy,its great effect is self-evident whether it is the industrialization that the industrialized countries had experienced or the developing countries are experiencing.However along with the development of the economy,environmental pollution problems becoming more and more serious.Our country's economy had experienced rapid development since the reform and opening up,and also create total heavy carbon emissions with the growth of the economy and the environmental effect of FDI is becoming obviously.Pollution heaven hypothesis that have reminded us our carbon emissions increased not only because the growth of the economy,but also related to the transfer of international investment.In order to solve the global environmental crisis,there are three feasible mechanisms,Clean Development Mechanism is one of feasible mechanisms under the framework of the Kyoto Protocol.As the CDM have a certain reduction effecst,We should consider the impact of this variable in the study of environmental effects of foreign direct investment.There are significant regional differences in the level of economic development of China,FDI and the number of CDM projects in China.It is also not the same in industrial structure and the structure of FDI in different regions.The actual effect of the environmental measures taken in different areas of governance is not the same too.In order to fully investigate environmental effects of FDI,it is particularly important to analysis regional differences.Exactly what is the impact of FDI on carbon emissions? Is the Pollution Haven Hypothesis is true in our country? How the impact of Clean Development Mechanism on carbon emissions? What about the reduction differences of The Clean Development Mechanism and FDI in eastern and western region? In order to seize opportunities of CDM projects,better utilization of foreign capital to solve our environmental problems,the paper studies these issues and provides a theoretical basis.Firstly,the paper analysis the effect of carbon emissions of FDI and the Clean Development Mechanism at the theoretical level and also examine the regional difference in environments.We use the data from 2004 to 2009 in eastern and western regions and the application of panel data analysis methods to do the test.We found that FDI inflows had a positive effect on China's environment and pollution haven hypothesis does not hold in our country through empirical study;The Clean Development Mechanism is an important factor when we study the carbon emissions;In terms of regional differences,the reduction effect of FDI in the eastern is less than that in western region,which is associate with the basis of energy technology in the eastern and western regions,while the emission reduction of CDM in eastern region is greater than that in western region,which is closely related to the type of project.Finally,we provide with the corresponding policy recommendations based on the findings.