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

Author

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  • 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)

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.

Suggested Citation

  • Tao Ding & Yadong Ning & Yan Zhang, 2017. "The Contribution of China’s Outward Foreign Direct Investment (OFDI) to the Reduction of Global CO 2 Emissions," Sustainability, MDPI, vol. 9(5), pages 1-15, May.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:5:p:741-:d:97514
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