How Do FDI and Technological Innovation Affect Carbon Emission Efficiency in China?

China’s economic development is characterized by openness, and trade and investment are important engines for promoting economic development. China’s economy is now in a transitional period, during which excessive carbon emission reduction would inevitably hinder economic development. In this contex...

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Bibliographic Details
Published inEnergies (Basel) Vol. 15; no. 23; p. 9209
Main Authors Wang, Qizhen, Liu, Suxia
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.12.2022
Subjects
Carbon
carbon emission
carbon emission efficiency
Clean energy
Clean technology
Competition
Consumption
Data envelopment analysis
Decentralization
Economic development
Economic growth
Efficiency
Emissions
Emissions (Pollution)
Emissions control
Emissions trading
Energy
Energy policy
Environmental impact
Environmental protection
FDI
Foreign investment
Green building (Construction)
Green development
Green technology
Halo effect
Heterogeneity
Host country
Hypotheses
Influence
Innovations
Multinational corporations
Pollution
Sustainable development
Technological change
technological innovation
Technology
China
United States > US
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Summary:China’s economic development is characterized by openness, and trade and investment are important engines for promoting economic development. China’s economy is now in a transitional period, during which excessive carbon emission reduction would inevitably hinder economic development. In this context, improving carbon emission efficiency is an effective way to achieve sustainable development. This paper deals with the relationships among foreign direct investment, technological innovation and carbon emission efficiency. Our research findings include the following. First, carbon efficiency shows regional differences. East China has the highest mean value of carbon emission efficiency, followed by central China and west China over the sample period. Second, FDI exerts both direct and indirect impacts on carbon emission efficiency through technological innovation, which confirms the intermediate effect of technological innovation. Finally, sub-sample analysis indicates that the impact of FDI and technological innovation on carbon emission efficiency show regional heterogeneity. According to these findings, we offer policy recommendations as follows. The government should stimulate independent innovation, promote technological progress in renewable energy and green energy, and attract environmentally friendly foreign investment to improve carbon emission efficiency and boost green development.
ISSN:1996-1073
1996-1073
DOI:10.3390/en15239209