The Impact of Foreign Direct Investment, Green Technology Innovation and GDP on CO2 Emissions in Western China: A Static Panel Data Analysis

Abstract

This study investigates the impact of FDI, green technology innovation and GDP on CO2 emissions in the western region of China. This study applies the extended STIRPAT model, selects the relevant data of nine provinces in western China from 2000 to 2019, applies the static panel data analysis method, compares and analyses the estimation methods of Pooled OLS, fixed effect and random effect, and finally adopts the robust standard error estimation method of fixed effect. The results of the robust standard error estimation indicate that, in addition to the negative impact of green technology innovation on CO2 emissions, CO2 emissions are positively impacted by FDI, GDP, population, and the proportion of the secondary and tertiary industries. Therefore, reasonable introduction of FDI and improving green technology innovation levels are crucial in reducing CO2 emissions in the western region of China.