Study On The Impact Of OFDI On China’s Carbon Emission Intensity

Chinese economy has developed rapidly after the reform and opening up 40 years.Chinese main role has gradually evolved from the host country of FDI to the home country of OFDI in the international investment.As economic development,environmental problems have become seriously.The global carbon dioxide emission increases speed,and the greenhouse effect intensifies.The United Nations has held several climate summits to sign agreements that set carbon emission reduction targets.China is the world’s second largest economy,the largest energy consumer and greenhouse gas emitter,which China has pledged to peak carbon emissions in 2030 and reach carbon neutrality in 2060 as a responsible major country.At present,the development of globalization is unstoppable,and China adheres to the "going out" strategy.It will help enterprises increase their living space and reduce international trade frictions by increasing OFDI.Therefore,the study owns practical significance about OFDI and the carbon emission intensity of home countries.This paper studies the carbon emission intensity of Chinese OFDI on home country from two aspect.At first,the mechanism of OFDI on home country carbon emission intensity is summarized by combing domestic and foreign literature,and using the theory of international investment and environmental pollution.Second,the study is based on the analysis of relevant theoretical mechanisms and the data of China’s OFDI and home country carbon emission intensity from 2006 to 2019,which adopts the stepwise regression method to empirically study the panel data.The result of this paper shows that for every 1% increase in China’s outward direct investment,the carbon emission intensity of the home country decreases by 0.020%.It indicates that China’s OFDI will curb the carbon emission intensity of the home country.In the mechanism test,there are scale effect,structural effect and reverse technology spillover effect.In the structural effect,OFDI increases the carbon emission intensity of the home country by affecting the rationalization of the industrial structure of the home country.So each additional unit of OFDI will increase the carbon emission intensity by 0.002%.OFDI could promote green technology innovation in the home country and master the advanced technology of the host country to curb the carbon emission intensity of the home country,which each additional unit of OFDI will reduce the carbon emission intensity by 0.002% through the reverse technology spillover effect.Finally,the paper is based on the theoretical mechanism analysis,the current situation and empirical analysis results of China’s OFDI and carbon emission intensity,which provides relevant policy suggestions on how to efficiently use OFDI to reduce the carbon emission intensity in the home countries,which are making differentiated regional OFDI strategies,focusing on the location selection of OFDI,and supporting technology-seeking OFDI.