The Contribution of China’s Outward Foreign Direct Investment (OFDI) to the Reduction of Global CO 2 Emissions

Tao Ding, Yadong Ning and Yan Zhang
Additional contact information
Tao Ding: Key Laboratory of Ocean Energy Utilization and Energy Conservation of Ministry of Education, School of Energy and Power Engineering, Dalian University of Technology, Dalian 116024, China
Yadong Ning: Key Laboratory of Ocean Energy Utilization and Energy Conservation of Ministry of Education, School of Energy and Power Engineering, Dalian University of Technology, Dalian 116024, China
Yan Zhang: Key Laboratory of Ocean Energy Utilization and Energy Conservation of Ministry of Education, School of Energy and Power Engineering, Dalian University of Technology, Dalian 116024, China

Sustainability, 2017, vol. 9, issue 5, 1-15

Abstract: Under economic globalization, with the intensification of China’s reform and opening up, China’s outward foreign direct investment (OFDI) has continuously gained momentum, but CO 2 emissions caused by the OFDI have not been given due attention. As one China is of the world’s leading CO 2 emitters, it is necessary to conduct thorough research into the CO 2 emission problem caused by China’s OFDI. Thirty-four host countries were selected as the objects of this study, including some European countries, Australia, India, Indonesia, Brazil, Canada, Japan, Korea, Mexico, Russia, and the USA. Their CO 2 emissions as caused by China’s OFDI were calculated using the input-output model with non-competitive imports, the data of China’s OFDI flows, and their own energy consumption and CO 2 emissions from 2000 to 2011. Then a comparative analysis was performed taking China as the comparative object. CO 2 emission transfer of China’s OFDI was studied quantitatively. Finally, CO 2 emissions from China’s OFDI were discussed from the perspective of industry selection and location selection. The results showed that China’s OFDI could achieve the aim of reducing global carbon emissions with reasonable industry and location selection.

Keywords: outward foreign direct investment; CO 2 emissions; input-output model; CO 2 emission transfer (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2071-1050/9/5/741/pdf (application/pdf)
https://www.mdpi.com/2071-1050/9/5/741/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:5:p:741-:d:97514

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().