Foreign Direct Investment, Trade Openness and CO₂ Emissions: Taking Shandong Province as an Example

Abstract:

With the use of data from Shandong province for 1995-2012 and cointegration method, the author carried out an empirical analysis on impacts of foreign direct investment and trade openness on carbon emission intensity in Shandong province, it was found that FDI had an inhibitory effect on carbon emission intensity, while foreign trade openness had a promoting effect on carbon emission intensity, and the latter’s elastic coefficient was 1.5 times as big as that of the former. The policy recommendations given in the paper were: upgrading of energy consumption access standards for foreign investment; Eliminating backward production capacity of domestic enterprises in a timely manner and preventing domestic enterprises from becoming “pollution heaven”; playing Shandong province’s demonstration and reference value, tapping into economical development potential of the region, as well as establishing and implementing ecological compensation system.

• Periodical: Advanced Materials Research (Volumes 1073-1076)
• Pages: 2691-2699
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.1073-1076.2691
• Online since: December 2014
• Authors: Yu Dong Xu
• Keywords: CO₂ Emission, Cointegrating, Foreign Direct Investment, Shandong Province, Trade Openness

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