A Study On The Effect Of China's OFDI On Home Country's Carbon Emissions

In the background of China's rapid economic development.More and more domestic enterprises actively develop direct foreign investment and exploit oversea markets.At the same time,the domestic environmental pollution has been deteriorating and the carbon emissions have been increasing.The international community consider reducing carbon emissions and developing low-carbon economy as the key to solve resource shortage and global warming.China's carbon emissions hit record highs since it became the world's largest carbon emitter in 2006.At the same time,China's OFDI continuing to rise over the years.Many countries questioned China's OFDI in high-pollution,high-energy consumption enterprises have destroyed the host countries' environment.The debate about whether China's OFDI meets the Hypothesis of Pollution Haven has not been determined yet. Therefore,it has important theoretical and practical significance to study the effect of China's OFDI on domestic carbon emissions under the condition of open economy.It finds that OFDI has a significant positive impact on the carbon emissions by empirical analysis of 30 provinces'(Tibet excluded) panel data in China from 2004 to 2013.If the OFDI increases by 1%,CO2 emissions per capita will increase by about 0.012%.However,this effect is proved with region variance.That is,the positive effect of OFDI on China's carbon emissions appears higher in central China than western China while this effect appears negative and insignificant in eastern China.Meanwhile,it is found that GDP,industrial structure,technological level and energy consumption structure can significantly influence China's carbon emissions.The effect of GDP,industrial structure and energy consumption structure on carbon emissions is positive,and technological level's effect of carbon emissions is negative.