The Influence Of Foreign Investment On China’s Carbon Emissions

The growth of foreign direct investment was amazing. China has drawn the inflow of FDI worldwidedue to its sheer size and attractive economic growth. It has since become one of the major host countrieswith inflow of FDI. But at the present, China’s carbon dioxide emissions has overtake the UnitedStates,become the world’s first. It accounts for about30%of the total global emissions. In this paper, basedon the status quo of the China’s foreign direct investment and the emission of carbon dioxide, we want toanalysis that how the foreign direct investment inflows influence China’s carbon dioxide emissions?This Paper has a study on the relationship between FDI and CO2in China through scale,composition,technical and regulation aspects. Through the1999-2010in29provinces panel data analysis,it is concluded that the FDI elasticity coefficient of CO2emissions is-0.031, indicating that if FDIincreases by l%, CO2emissions Per capita would decrease by around0.031%. But the result is not verysignificant. Although FDI through scale effect and structure effect has significant effect of the increase ofCO2emissions, but the technical effect of FDI has significantly effect. Overall, the size and structure of thenegative effects of FDI to our country CO2emissions is less than the technical effect, total effect is positive.From the point of regional comparison, The largest intercept is Shan Xi Province, the intercept is25952.21.On the contrary,the least intercept is Qinghai Province. The regression results show: the provinces withless CO2emissions are more concentrated in the eastern region,while the provinces with more CO2emissions are mostly concentrated in central and western regions.Since the negative effects of FDI on China’s carbon dioxide emissions is less than the positiveeffects,the total effect is positive. At the same time, the regression shows the formal environmentalregulation is weak, and informal environmental regulation has significantly emission reduction effect. Thispaper puts forward a series of corresponding suggestions.