The carbon footprint of Chinese multinationals’ foreign affiliates

As China’s outwards foreign direct investment (OFDI) has grown dramatically, the environmental impact of the production activities of Chinese multinational enterprises (MNEs) has received substantial attention. Using a multiregional input-output model reflecting firm heterogeneity, this study measur...

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Main Author: Ruize Wu
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Carbon Management
Subjects:
Online Access:http://dx.doi.org/10.1080/17583004.2023.2236068
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author Ruize Wu
author_facet Ruize Wu
author_sort Ruize Wu
collection DOAJ
description As China’s outwards foreign direct investment (OFDI) has grown dramatically, the environmental impact of the production activities of Chinese multinational enterprises (MNEs) has received substantial attention. Using a multiregional input-output model reflecting firm heterogeneity, this study measures the carbon footprint (CF) and value-added (VA) of Chinese MNEs’ foreign affiliates to quantify the trade-off between economic benefits and environmental damage. The results show that Chinese MNEs’ affiliates’ CF is not large but grows quickly, mainly driven by investment and scale effects. The CF of foreign affiliates is primarily distributed in resource-intensive countries. The economic-environmental effect of Chinese MNEs’ foreign affiliates is heterogeneous across countries and sectors. The best performance is found in the manufacturing sectors of most developing countries, with the worst performance in the service sectors of developed countries. Chinese MNEs’ affiliates can transfer clean technology from developed host countries to China through reverse technology spillovers.
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spelling doaj.art-87ed86c9425847b198a9ccd1c1b164bf2023-09-21T15:09:07ZengTaylor & Francis GroupCarbon Management1758-30041758-30122023-12-0114110.1080/17583004.2023.22360682236068The carbon footprint of Chinese multinationals’ foreign affiliatesRuize Wu0Business School, Central University of Finance and EconomicsAs China’s outwards foreign direct investment (OFDI) has grown dramatically, the environmental impact of the production activities of Chinese multinational enterprises (MNEs) has received substantial attention. Using a multiregional input-output model reflecting firm heterogeneity, this study measures the carbon footprint (CF) and value-added (VA) of Chinese MNEs’ foreign affiliates to quantify the trade-off between economic benefits and environmental damage. The results show that Chinese MNEs’ affiliates’ CF is not large but grows quickly, mainly driven by investment and scale effects. The CF of foreign affiliates is primarily distributed in resource-intensive countries. The economic-environmental effect of Chinese MNEs’ foreign affiliates is heterogeneous across countries and sectors. The best performance is found in the manufacturing sectors of most developing countries, with the worst performance in the service sectors of developed countries. Chinese MNEs’ affiliates can transfer clean technology from developed host countries to China through reverse technology spillovers.http://dx.doi.org/10.1080/17583004.2023.2236068multinational enterprisesforeign affiliatescarbon footprintvalue-addedmultiregional input-output model
spellingShingle Ruize Wu
The carbon footprint of Chinese multinationals’ foreign affiliates
Carbon Management
multinational enterprises
foreign affiliates
carbon footprint
value-added
multiregional input-output model
title The carbon footprint of Chinese multinationals’ foreign affiliates
title_full The carbon footprint of Chinese multinationals’ foreign affiliates
title_fullStr The carbon footprint of Chinese multinationals’ foreign affiliates
title_full_unstemmed The carbon footprint of Chinese multinationals’ foreign affiliates
title_short The carbon footprint of Chinese multinationals’ foreign affiliates
title_sort carbon footprint of chinese multinationals foreign affiliates
topic multinational enterprises
foreign affiliates
carbon footprint
value-added
multiregional input-output model
url http://dx.doi.org/10.1080/17583004.2023.2236068
work_keys_str_mv AT ruizewu thecarbonfootprintofchinesemultinationalsforeignaffiliates
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