Effects of FDI on Environment Pollution based on Carbon Dioxide Emissions in the Pearl River Delta Region

摘要

Issues related to global climate change have attracted widespread attention around the world, and China isno exception. With the introduction of a huge number of foreign direct investment (FDI), carbon dioxideemission pollution, such as ocean acidification, has become a serious threat in the Pearl River Delta (PRD)region. This study constructs models to analyse the effects of FDI on carbon dioxide emissions in the PRDregion, as well as to analyse the scale, technique and composition effects in the area. Results indicate that theintroduction of FDI can effectively reduce carbon dioxide emissions in the region because the foreign capitalcould bring environmental-friendly and energy-saving technologies, reduce carbon dioxide emissions per unitof GDP, and lessen damage to the environment. In addition, foreign capital flowing into the secondary sectorhas caused more serious damage to the environment than those flowing into the tertiary sector. Therefore, thearea should actively guide foreign investment into industries with lower pollution and lower emissions. At thesame time, strict standards should be developed to slow down the inflow of foreign capital in sectors which areenergy-intensive, environmentally damaging, and have low levels of value-added production.