Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China
As an important policy to promote global energy transition and carbon emission reduction, does the carbon emission trading policy help promote foreign direct investment inflows, thus alleviating the contradiction between environment and economic development? Based on the “OLI paradigm,” by using the...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2022-01-01
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| Series: | Frontiers in Environmental Science |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fenvs.2021.798438/full |
| _version_ | 1798025440768557056 |
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| author | Wei Shao Wei Shao Xiaobo Yu Ziqi Chen |
| author_facet | Wei Shao Wei Shao Xiaobo Yu Ziqi Chen |
| author_sort | Wei Shao |
| collection | DOAJ |
| description | As an important policy to promote global energy transition and carbon emission reduction, does the carbon emission trading policy help promote foreign direct investment inflows, thus alleviating the contradiction between environment and economic development? Based on the “OLI paradigm,” by using the data of China’s 30 provinces from 2007 to 2016 and taking China’s pilot implementation carbon emission transaction policy in 2013 as the natural experiment, so as to construct a differences-in-differences model, this study empirically analyzed the impact of carbon emission transaction policies on foreign direct investment and conducted an in-depth analysis and discussion on related heterogeneity. The empirical results show that 1) there is a positive correlation between the carbon emission trading policy and foreign direct investment; 2) the results of heterogeneity analysis show that the effect of carbon emission trading policy on the increase in FDI is more significant in the areas with a stronger environmental regulation, a higher degree of marketization, and low energy consumption. The conclusions of this study enrich the analysis of the effectiveness of government environmental policies from the perspective of both environment and economic development and provide relevant policy enlightenment for developing countries in environmental regulation and attracting foreign direct investment.Systematic Review Registration: [website], identifier [registration number]. |
| first_indexed | 2024-04-11T18:19:07Z |
| format | Article |
| id | doaj.art-b41b8fc4fe504a55a58cfd7fe7652c1f |
| institution | Directory Open Access Journal |
| issn | 2296-665X |
| language | English |
| last_indexed | 2024-04-11T18:19:07Z |
| publishDate | 2022-01-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Environmental Science |
| spelling | doaj.art-b41b8fc4fe504a55a58cfd7fe7652c1f2022-12-22T04:09:49ZengFrontiers Media S.A.Frontiers in Environmental Science2296-665X2022-01-01910.3389/fenvs.2021.798438798438Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From ChinaWei Shao0Wei Shao1Xiaobo Yu2Ziqi Chen3School of Business, Zhejiang University of City College, Hangzhou, ChinaSchool of Economics, Zhejiang University of Finance and Economics, Hangzhou, ChinaSchool of Economics, Zhejiang University of Finance and Economics, Hangzhou, ChinaSchool of Economics, Zhejiang University of Finance and Economics, Hangzhou, ChinaAs an important policy to promote global energy transition and carbon emission reduction, does the carbon emission trading policy help promote foreign direct investment inflows, thus alleviating the contradiction between environment and economic development? Based on the “OLI paradigm,” by using the data of China’s 30 provinces from 2007 to 2016 and taking China’s pilot implementation carbon emission transaction policy in 2013 as the natural experiment, so as to construct a differences-in-differences model, this study empirically analyzed the impact of carbon emission transaction policies on foreign direct investment and conducted an in-depth analysis and discussion on related heterogeneity. The empirical results show that 1) there is a positive correlation between the carbon emission trading policy and foreign direct investment; 2) the results of heterogeneity analysis show that the effect of carbon emission trading policy on the increase in FDI is more significant in the areas with a stronger environmental regulation, a higher degree of marketization, and low energy consumption. The conclusions of this study enrich the analysis of the effectiveness of government environmental policies from the perspective of both environment and economic development and provide relevant policy enlightenment for developing countries in environmental regulation and attracting foreign direct investment.Systematic Review Registration: [website], identifier [registration number].https://www.frontiersin.org/articles/10.3389/fenvs.2021.798438/fullcarbon emission trading policyforeign direct investmentdifferences-in-differencesOLI paradigmenvironment and economic development |
| spellingShingle | Wei Shao Wei Shao Xiaobo Yu Ziqi Chen Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China Frontiers in Environmental Science carbon emission trading policy foreign direct investment differences-in-differences OLI paradigm environment and economic development |
| title | Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China |
| title_full | Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China |
| title_fullStr | Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China |
| title_full_unstemmed | Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China |
| title_short | Does the Carbon Emission Trading Policy Promote Foreign Direct Investment?: A Quasi-Experiment From China |
| title_sort | does the carbon emission trading policy promote foreign direct investment a quasi experiment from china |
| topic | carbon emission trading policy foreign direct investment differences-in-differences OLI paradigm environment and economic development |
| url | https://www.frontiersin.org/articles/10.3389/fenvs.2021.798438/full |
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