Foreign Direct Investment and Carbon Emission Efficiency: The Role of Direct and Indirect Channels

A large number of foreign direct investment inflows not only promote China’s economic development but also bring environmental pollution problems., Improving carbon emission efficiency and cutting carbon emissions while maintaining China’s attractiveness to foreign investment has become a topic of c...

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Bibliographic Details
Published inSustainability Vol. 14; no. 20; p. 13484
Main Authors Wang, Qizhen, Zhang, Qian
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.10.2022
Subjects
Atmospheric carbon dioxide
Carbon dioxide
China
Climate change
Consciousness
Data envelopment analysis
Economic development
Economic growth
Efficiency
Emission analysis
Emission measurements
Emissions
Emissions (Pollution)
Energy consumption
Environmental aspects
Environmental protection
Environmental regulations
Foreign investment
Foreign investments
GDP
Global economy
Gross Domestic Product
Heterogeneity
Host country
Measurement
Sustainability
Technology
China
Europe
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Summary:A large number of foreign direct investment inflows not only promote China’s economic development but also bring environmental pollution problems., Improving carbon emission efficiency and cutting carbon emissions while maintaining China’s attractiveness to foreign investment has become a topic of concern in China. Firstly, this paper measures the carbon emission efficiency of different provinces in China with the super efficiency DEA model and studies the temporal and spatial characteristics of carbon emission efficiency. Secondly, the impact of FDI on carbon emission efficiency is investigated. FDI negatively affects carbon emissions but positively affects carbon emission efficiency. In addition, the interaction term of FDI and each channel negatively affects carbon emission efficiency, indicating that each channel has a negative impact on the relationship between FDI and carbon emission efficiency. Thirdly, the results of the sub-sample analysis show that the impact of FDI on carbon emission efficiency has the feature of regional heterogeneity. Based on the results, policy implications regarding the improvement of carbon emission efficiency are proposed.
ISSN:2071-1050
2071-1050
DOI:10.3390/su142013484