The effects of FDI on Carbon Emissions in China: Based on Spatial Econometric Model

S Cheng

Abstract


The analysis of the effects of FDI on carbon emissions in China from 2001 to 2012 based on spatial lag model and spatial error model is presented in this paper. It is found that FDI and carbon emissions in China are of significant spatial auto-correlation, the cluster effect of FDI wholly reduces the carbon emissions in China. Thus, the hypothesis that China has become the “Pollution Haven” of the foreign enterprises does not come into existence. Moreover, the carbon emissions are greatly affected by the economic scale, industrial structure and technology progress.


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