Empirical research on the relationship between open economy and carbon emission

Abstract

The paper aims to analyze the relationship between open economy and carbon emissions. It uses revised Cole model so as to analyze the influence of foreign direct investment, outward foreign direct investment and international trade on carbon emissions in China. Empirical results show that foreign direct investment and outward foreign direct investment help reduce carbon emissions in China, while export increase the carbon emissions. Carbon emissions in different regions are very different because of the disparity of region’s economic development level and industrial structure.