Research On The Effect Of Foreign Direct Investment On Carbon Intensity Of China

The global attention is concentrating in the global climate change. The rapid growth of emissionof carbon dioxide and other greenhouse gas and the global warming have already affected the energy,international trade and national security and other areas, so the emission of carbon dioxide hasbecome the problem which the whole world must face and solve. As a responsible big country, theChinese government has developed made low-carbon economy as a national long-term strategy, andhas proposed the carbon dioxide emissions per unit of GDP of2020will be down40%-45%than of2005to show that China's determination to tackle climate problem, which has been brought in thelong-term economic and social development plan.Since the reform and opening up, the foreign direct investment is an important driving force topromote economic development of China. Foreign direct investment in driving China's economicdevelopment, at the same time, China also develops a large number of high-carbon content productsdue to foreign direct investment. So the metastatic carbon emissions can not be ignored. Therefore,the research on carbon emissions should consider the international investment. On the other hand, R&D and climate-friendly technologies is essential for the development of the green economy andlow-carbon economy. Technological progress and technological innovation are important ways toimprove energy efficiency and to reduce carbon dioxide emissions, while the spillovers of foreigndirect investment in developing countries is the major source of technological progress. So, which akind of impact foreign direct investment on China's carbon intensity produced?So, technology spillovers from foreign direct investment are considered to study the relationshipbetween foreign direct investment and carbon dioxide emissions, and main contents include:1．The evaluation index system of carbon emissions is established considering the economiclevel, industrial structure, energy consumption structure, people's living standards, internationalinvestment and trade. According to Projection Pursuit classification model, the carbon emissionsfactors are analyzed in China from1996to2008, which shows foreign direct investment is animportant factor in China's carbon emissions. The result also points out spatial factors play animportant role on China's carbon emissions.2. The long-term equilibrium relationship between foreign direct investment and the carbonintensity is proved by panel data unit root tests and co integration tests. Then from the perspective oftime, dynamic panel regression model is adopted to analyze the dynamic relationship between foreigndirect investment and the carbon intensity.3. The regional spatial correlation of carbon intensity in China is tested by the spatialeconometrics on the basis of significant regional differences of carbon emissions in China. Then thespatial regression model is established to study the relationship between foreign direct investment andthe carbon intensity.4. From the perspective of structural analysis, the carbon intensity factors are decomposed fromeconomies of scale, structure, technology spillover effects of foreign direct investment by the indexdecomposition method.The results show that: foreign direct investment is an important factor affecting carbon emissions, and the technology spillovers of foreign direct investment can effectively reduce the carbon intensityof China. Therefore, we should expand foreign direct investment in the scale and optimize theinvestment structure of foreign direct investment. At the same time, R&D investment must beincreased in China to improve China's own R&D level. Finally, in order to ensure carbon emissionreduction goals, the industrial structure should be optimized to develop the tertiary industrycharacterized by low-carbon.