Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
. 2022 Nov;29(55):83956-83968.
doi: 10.1007/s11356-022-21712-x. Epub 2022 Jul 1.

The carbon reduction effect of China's outward foreign direct investment for carbon neutrality target

Zong-Bin Zhang  1 , Wan-Yi Dong  2 , Zi-Yu Tang  3
Affiliations

The carbon reduction effect of China's outward foreign direct investment for carbon neutrality target

Zong-Bin Zhang et al. Environ Sci Pollut Res Int. 2022 Nov.

Abstract

Based on mainland China's provincial OFDI and carbon emissions data from 2003 to 2018, this paper applied a panel fixed-effects model and spatial econometric model to empirically test whether China's OFDI can be a powerful tool to achieve the "carbon neutrality" target. The empirical results indicate that China's OFDI significantly increases carbon emissions, but this effect has temporal and spatial differences. After incorporating spatial factors into the analysis, the impact of OFDI on carbon emissions differs when modelled by different spatial weight matrices. The green effect of OFDI has the problem of poor channels. It is impossible to achieve energy savings and emission reduction by promoting green technology innovation, improving the rationalization of the industrial structure or reducing energy consumption. The test results of the moderating effect indicate that the development of green finance can weaken the positive effect of OFDI on emissions.

Keywords: Carbon emissions; Energy consumption; Green finance; Green technology innovation; OFDI.

PubMed Disclaimer

Conflict of interest statement

The authors declare no competing interests.

Similar articles

See all similar articles

Cited by

References

    1. Andreoni J, Levinson A. The simple analytics of the environmental Kuznets curve. J Public Econ. 2001;80(2):269–286. doi: 10.1016/s0047-2727(00)00110-9. - DOI
    1. Bai Y, Qian Q, Jiao J, Li L, Li F, Yang R. Can environmental innovation benefit from outward foreign direct investment to developed countries? Evidence from Chinese manufacturing enterprises. Environ Sci Pollut Res. 2020;27(12):13790–13808. doi: 10.1007/s11356-020-07819-z. - DOI - PubMed
    1. Barrios S, Greg H, Strobl E. Foreign direct investment, competition and industrial development in the host country. SSRN Electron J. 2004;49(7):1761–1784.
    1. Burkhardt J, Bayham J, Wilson A, Carter E, Berman JD, O'Dell K, Pierce JR 2019 The effect of pollution on crime: evidence from data on particulate matter and ozone. J Environ Econ Manag 98. 10.1016/j.jeem.2019.102267
    1. Chami R, Cosimano TF, Fullenkamp C. Managing ethical risk: How investing in ethics adds value. J Bank Financ. 2002;26(9):1697–1718. doi: 10.1016/S0378-4266(02)00188-7. - DOI

LinkOut - more resources