Abstract
Exploring the path and mechanism of marketization level in the effect of foreign direct investment (FDI) on carbon emission performance will help to maximize the stimulation effect of foreign investment on green and low-carbon development. This study used the panel data of 11 provinces and cities in the Yangtze River Economic Belt from 2008 to 2016. A panel threshold model is constructed to explore the non-linear relationship between FDI and carbon emissions performance from the perspective of marketization level. The main conclusions are as follows: First, from the perspective of marketization level, a significant double threshold effect exists between foreign participation and carbon emission intensity, with threshold values of 4.4701 and 9.2516 respectively. Second, as the marketization level increases, the technology spillover effect of FDI increases, and the stimulation effect of foreign participation on carbon intensity decreases significantly, but it does not inhibit carbon intensity, indicating that the overall benefits brought by FDI technology spillovers are still insufficient to offset pollution caused by foreign investment. Third, the eastern region of the Yangtze River Economic Belt has crossed the second threshold. In the central and western regions, the marketization process is relatively slow except for Chongqing, and the regions are still firmly stuck between the first and second thresholds. In response to the conclusions of the empirical research, relevant policy suggestions are put forward from three dimensions, namely, the strategy of introducing foreign investment, construction of the marketization system, and environmental regulation, to achieve low-carbon and green development in the Yangtze River Economic Belt.
Highlights
Since the 1980s, with the intensification of reform and opening up, a large amount of foreign direct investment (FDI) has flowed into China to implement the strategy of “trading domestic market for technology.” In 2014, China surpassed the United States as the country with the largest FDI inflow, with an investment volume of 129 billion USD
At a seminar on the development of the Yangtze Economic Belt in 2016, it was proposed that the restoration of the ecological environment of the Yangtze River is of utmost importance, while joint efforts must be devoted to major plans of protection instead of development. This provides a clear direction for the economic development and ecological construction of the Yangtze River Economic Belt
It indicates that when Market < 4.4701, foreign participation increases by 1%, and carbon emissions intensity increases by 0.2530%
Summary
Since the 1980s, with the intensification of reform and opening up, a large amount of foreign direct investment (FDI) has flowed into China to implement the strategy of “trading domestic market for technology.” In 2014, China surpassed the United States as the country with the largest FDI inflow, with an investment volume of 129 billion USD. Based on the perspective of marketization level, this study selects a typical region, the 11 provinces and cities in the Yangtze River Economic Belt, as the research object. As FDI affects carbon emissions, how do the marketization factors exert their effect in the process? Are there significant differences in the effects of FDI on carbon emissions under different market conditions? It analyses the mechanism and path of marketization factors in the process of FDI affecting carbon emissions, and the non-linear relationship between FDI and carbon emissions under different marketization levels. It is hoped that the results can be used as academic references for formulating reasonable regional economic policies, deepening the construction of marketization, and implementing low-carbon and green development
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