An Empirical Study of the Relationship between Investment and Carbon Emission in China: Based on the Input-output Model

Abstract

After the global financial crisis in 2008, China had increased domestic investment, stimulated economic growth and produced a large amount of carbon emission at the same time. The impact of investment on carbon emission and emission reduction target in China has become an important research subject. Based on the input-output model, this research estimated carbon emission of every sector caused by investment, and analyzed the relationship between investment and economy as well as carbon emission. Then whether some sectors are beneficial to carbon emission reduction or not and other relevant questions are evaluated. The results show that there are significant differences in the impact of investment on economic growth and carbon emission in different sectors.