Inward foreign direct investment, outward foreign direct investment, and carbon dioxide emission intensity-threshold regression analysis based on interprovincial panel data

Determinants that attract and discourage foreign direct investment in GCC countries: Do macroeconomic and environmental factors matter?

In general, foreign direct investments (FDIs) play a crucial role in driving a country's economic development, promoting diversification, and enhancing competitiveness. The Gulf Cooperation Council (GCC) countries, which heavily rely on the oil and gas sectors, are particularly vulnerable to fluctuations in commodity prices. However, these countries have recognized the imperative of economic diversification and have increasingly turned to inward FDIs to achieve it. By attracting capital, advanced technology, and expertise from foreign investors, FDIs enable the GCC countries to expand their economic base beyond the oil and gas sectors. This diversification not only creates employment opportunities but also fosters resilient economic growth, ultimately leading to an improvement in the living standards of the local population. This study investigates the macroeconomic and environmental factors that potentially attract foreign direct investment (FDI) inflows into the Gulf Cooperation Council (GCC) countries in the long run. Additionally, the study explores the causal relationship between these factors and FDI inflows. The panel autoregressive distributed lag (ARDL) approach to co-integration is the primary analytical technique used, utilizing long time-series data from six GCC countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) during the period 1990-2019. The empirical results indicate that, in the long run, almost all independent variables significantly influence FDI in GCC countries. Variables such as GDP growth (GDPG), inflation (INFL), carbon dioxide emissions (CO2), and urbanization (URB) are found to be highly significant (p≤0.01) in their impact on FDI. Moreover, unemployment (UNEMP) also positively and significantly influences FDI in these countries in the long run. Based on the key findings, strategies aimed at reducing persistently high unemployment rates, maintaining population growth, viewing FDI as a driver for GDP growth, and continuing with infrastructure development and urbanization are expected to attract more FDI inflows into GCC countries in the long run. Additionally, fostering both long-term economic incentives and creating a conducive business infrastructure for investors are vital for attracting inward FDI into any nation, including those in the GCC. This research would benefit various stakeholders, including governments, local businesses, investors, academia, and the local society, by providing valuable knowledge and informing decision-making processes related to economic development, diversification, and investment promotion.

Spatiotemporal evolution of carbon emission intensity and the driving effect of green technology innovation: Evidence from China

The "double carbon" goal has proposed new "green" requirements for China's low-carbon economic development, and green technology innovation (GTI) has become an important way to coordinate economic and sustainable development. The study explores the spatial-temporal evolution of carbon emission intensity (CEI) of Chinese prefecture-level cities, analyses the nonlinear impact of GTI on the CEI by constructing a panel quantile model, and draws the following conclusions. First, CEI shows a decreasing trend from 2006 to 2019 and a spatial distribution pattern of "high in the north and low in the south, high in the west and low in the east". Second, GTI significantly reduces CEI, and as the quantile point increases, the carbon reduction effect of GTI is characterized by a U-shaped change, decreasing first and then increasing. Overall, GTI has a significantly more profound inhibiting effect on high CEI regions than on low CEI regions. Third, there is spatial heterogeneity in the impact of GTI on CEI across the four major regions and diverse policy contexts. The study proposes countermeasures for low-carbon development in terms of tapping the potential of GTI, strengthening its regional synergy, and applying locally appropriate measures, to gain the great practical significance for achieving the double carbon target.

Does China Overseas Economic and Trade cooperation Zone affect CO2 emissions in host countries? Evidence from a quasi-natural experimental of countries along the "Belt and Road"

China Overseas Economic and Trade Cooperation Zone (COCZs) which as a platform for China's foreign investment and trade has a potential impact on CO2 emissions, while strengthening bilateral investment and trade between China and the host countries. Since most of the COCZs are located in countries along the "Belt and Road," the purpose of this paper is to investigate the impact of COCZs on CO2 emissions of the countries along the "Belt and Road" and the mechanism of this impact. We constructed a panel data of 63 countries along the "Belt and Road" from 2000 to 2020, and conducted an empirical study using the difference-in-difference (DID) model. Our research result show that COCZs can significantly increase the CO2 emissions of the countries along the "Belt and Road." Then, we conduct a series of robustness tests and endogeneity test on the estimation results of the baseline model, and the results of the tests all support the conclusion reached by the baseline model. Our heterogeneity analysis reveals that the effect of COCZs on CO2 emissions is more significant in Asian countries with lower national income or industrialization and higher country risk. Finally, we analyzed industrial value added and energy depletion as possible impact mechanisms, the results of mechanism model shows that COCZs can increase the industrial value added and then significantly increase CO2 emissions, but energy depletion was not an efficient mechanism. Our paper provides a new insight into the impact of bilateral economic and trade cooperation zones on CO2 emissions in host countries.

Can environmentally friendly technology help China to achieve a carbon neutrality target by 2060? An asymmetrical based study in China

Climate change-related environmental challenges are prompting an increasing number of countries to set carbon-neutral targets. Since 2007, China has pursued numerous initiatives to attain carbon neutrality by 2060, including increasing the percentage of non-fossil energy, developing zero-emission and low-emission technologies, and taking actions that reduce CO2 emissions or boost carbon sinks. As a result, utilizing quarterly data from 2008/Q1 to 2021/Q4, and applying the nonlinear autoregressive distributed lag (NARDL) approach, this study evaluates the effectiveness of the measures taken by China to improve the ecological situation. The results of the study show that the measures enacted to reduce CO2 emissions did not accomplish their ultimate purpose. Specifically: (i) high-speed railways and new energy vehicles do not improve the environment in the long run; (ii) investments and patents in the energy sector, as well as low-carbon sources, will degrade the environment; (iii) only investments in the treatment of environmental pollution will improve the ecological situation. Various policy implications are suggested based on the empirical results in order to attain environmental sustainability.

Does economic growth target constraint put pressure on green energy efficiency? Evidence from China

Building a sustainable energy system and achieving sustainable economic growth has always been China's development goal. However, under the promotion incentive and information asymmetry, local governments may choose to sacrifice the ecological environment to maintain expected economic growth goals. This paper analyzes the relationship between economic growth targets and green energy efficiency (GEE) by using panel data models and spatial econometric techniques. Moreover, the mediation effect model and threshold effect model are used to study their influence mechanism and the possible nonlinear relationship. The results indicate that economic growth targets reduce the efficiency of GEE. The impact of environmental regulation on GEE is "U" shaped. Environmental regulation plays a positive moderation role between economic growth targets and GEE. Additionally, higher levels of technological innovation, industrial upgrading, and environmental regulation result in a reduction in the negative effects of economic growth targets on the GEE. However, the improvement in the foreign direct investment can increase the negative influences of economic growth targets on the GEE.

Synergistic effect of air pollutant abatement on CO2 reduction in the industrial sector: evidence from China

The synergistic abatement of air pollutants and CO₂ emission in the industrial sector is crucial for China to achieve its energy conservation and emission reduction goals. However, none of the literature has conducted a systematic and in-depth research on assessing the synergistic abatement effect and identification of its driving factors for the industrial sector in China. Therefore, based on 36 industrial sub-sectors in China, we assess the synergistic effect of air pollutants on CO₂ and examine the expansion mechanism of the synergistic effect. Furthermore, we explore how three driving factors, namely environmental regulation, technological progress and energy structure, affect the synergistic effect of abatement. The results indicate that, for the whole industrial sector, the synergistic effect of air pollutant abatement on CO₂ reduction is significant, positively moderated by the enhancement of R&D investment, fixed asset investment and market openness. Strengthening environmental regulation, improving technological progress and optimizing energy structure could effectively promote the synergistic abatement effect. For three industrial subdivisions, the synergistic effect exists in three industrial categories, increasing R&D investment and fixed asset investment could positively moderate the synergistic effect. The three driving factors, environmental regulation, technological progress, and energy structure, could boost synergistic abatement for capital-intensive industries, but hardly for resource- and labor-intensive industries. In technology-intensive industries, only environmental regulation and technological progress could promote synergistic abatement. The findings could offer scientific support for the policymaking of the synergistic control of air pollutants emission and CO₂ emission in China's industrial sector.

Can outward foreign direct investment improve China's green economic efficiency?

Under the constraints of energy and environment, improving green economic efficiency (GEE) has become the key path to promote the sustainable economic development. Among the driving factors of GEE, the role of outward foreign direct investment (OFDI) is worth exploring. In this paper, we adopt the inter-provincial panel data of China from 2011 to 2019 and System Generalized Method of Moments (SYS-GMM) to explore the influence of OFDI on GEE. We find that OFDI significantly improves China's GEE, and reverse technology spillover through direct investment in developed countries is an important way for OFDI to promote GEE. Regional heterogeneity test shows that OFDI significantly promotes GEE in eastern China; however, the promotion effect is not significant in midwestern China. Besides, the promoting effect of OFDI on GEE has been further improved after 2016. We further adopt panel threshold model and find that when the financial development (FD) and human capital (HUM) exceeds 2.0954 and 0.0290, respectively, the promoting effects of OFDI on GEE are greatly enhanced. We suppose that the above conclusions can provide guidance for policymakers to optimize OFDI and improve GEE.

Carbon neutrality challenges in Belt and Road countries: what factors can contribute to CO2 emissions mitigation?

As climate warming is intensifying, CO2 emission reduction has aroused the great attention of many governments and scholars. Compared with traditional industrial times, the influencing system of CO2 emission in modern society has taken great changes due to technological advancement, improvement in energy efficiency, and the popularity of the internet. But the current literature has not reached a consensus on this theme. Our study tends to investigate the nexus between international trade, international trade taxes, energy intensity, internet usage, renewable energy, and CO2 emission while incorporating income levels by using the data from Belt and Road countries in the 2008-2020 period. For this purpose, we applied the unit root test, CSD, Granger causality test, AMG, CCMG, and CS-ARDL methods. The results show that energy efficiency, GDP, and internet use have significantly negative effects on CO2 emission, while GDP has significant positive impacts on CO2 emission. By classifying 65 countries along Belt and Road into four groups of low-income level, low-middle income level, upper-middle income level, and a high-income level, the regional heterogeneities of influencing factors of CO2 emission is confirmed. Furthermore, this empirical study provides new insights to policymakers to reduce CO2 emissions through technology innovation, international cooperation, and human capital investment without deteriorating economic growth.

How to Efficiently Reduce the Carbon Intensity of the Heavy Industry in China? Using Quantile Regression Approach

This decoupling between carbon dioxide emissions and the heavy industry is one of the main topics of government managers. This paper uses the quantile regression approach to investigate the carbon intensity of China's heavy industry, based on 2005-2019 panel data. The main findings are as follows: (1) incentive-based environmental regulations have the greater impact on the carbon intensity in Jiangsu, Shandong, Zhejiang, Henan, Liaoning, and Shaanxi, because these provinces invest more in environmental governance and levy higher resource taxes; (2) the impact of mandatory environmental regulations on carbon intensity in Beijing, Tianjin, and Guangdong provinces is smaller, since these three provinces have the fewest enacted environmental laws and rely mainly on market incentives; (3) conversely, foreign direct investment has contributed most to carbon intensity reduction in Tianjin, Beijing, and Guangdong provinces, because these three have attracted more technologically advanced foreign-funded enterprises; (4) technological progress contributes more to the carbon intensity in the low quantile provinces, because these provinces have more patented technologies; (5) the carbon intensity of Shaanxi, Shanxi, and Inner Mongolia provinces is most affected by energy consumption structures because of their over-reliance on highly polluting coal.

Investigation on the application of by-product steam in iron ore sintering: performance and function mechanism

The combustion-supporting effect of steam to coke breeze in sintering has the potential to improve sinter quality and reduce pollutants emissions. The results show that increasing the by-product steam injection concentration (0.32-0.47vol%) and prolonging the injection time (5 min) within a proper range (10-15 min) can improve sinter quality. 2.13kgce/t_-sinter of the fuel consumption was decreased by reducing coke breeze usage from 5.60 to 5.45% under the recommended parameters, with 15.16% decrease of CO in sintering waste gas. By comparing experimental data with thermodynamic calculations, although the reaction between CO and steam can reduce CO emission and generate H₂, steam tends to react with coke breeze to generate H₂ and CO (react at 674℃), and OH radical produced by H₂ which can reduce the activation energy of CO oxidation reaction is the key to reducing pollutant emissions. The potential economic benefit of steam injection technology was calculated based on a 360m² sintering machine (the annual sinter output is 3.2million tons), excluding the equipment modification and steam injection cost of $300,000; a profit of $737491.2 per year or 0.23 dollars per ton sinter can be achieved. Therefore, low-carbon and cleaner iron ore sintering production can be realized through applying by-product steam.

Impacts of two-way foreign direct investment on carbon emissions: from the perspective of environmental regulation

China's foreign direct investment is an important driving force for economic growth, which also aggravates carbon emissions. Based on China's provincial panel data from 2003 to 2018, this paper uses the panel-fixed effect model and panel threshold model to explore the impacts of two-way foreign direct investment on carbon emissions and analyze the threshold effects of different environmental regulations. The empirical results show that inward foreign direct investment (IFDI) has a significant inhibitory effect on carbon emissions, while outward foreign direct investment (OFDI) leads to the aggravation of carbon emissions. Considering regional heterogeneity, environmental regulation in high-carbon areas mainly affects local OFDI, and environmental regulation in low-carbon areas mainly inhibits carbon emissions by affecting IFDI. In addition, high-carbon regions can achieve the inhibition of OFDI on carbon emissions by strengthening command-and-control regulation and reducing the promotion of OFDI on carbon emissions by strengthening market incentive regulation and voluntary regulation. Meanwhile, excessive command-and-control regulation and market incentive regulation in low-carbon areas bring unexpected regulatory effects, but the inhibitory effect of IFDI on carbon emissions can be increased by strengthening voluntary regulation.

The Contribution of Outward Foreign Direct Investment, Human Well-Being, and Technology toward a Sustainable Environment

This study evaluates the impact of outward foreign direct investment (OFDI), human well-being, and other macro indicators of the public sector on carbon footprint. Empirical analysis has been carried out for newly industrialized economies that span the period 1990–2017. We used augmented mean group and bootstrap panel causality techniques to cogitate the cross-sectional dependence and country-specific heterogeneity. Based on cross-country analysis, study results show that growing OFDI reduces carbon footprint efficiently in Mexico and Turkey, human well-being decreases emissions in the Philippines, and urbanization reduces emissions in China. Further, technology reduces emissions in Malaysia and Turkey, trade openness reduces emissions in China and Malaysia, and natural resource rents reduce emissions in Indonesia and Mexico. In the case of panel analysis, the moderating role of OFDI with human well-being is contributing toward a sustainable environment. Moreover, the moderation of OFDI and urbanization has an insignificant impact on CFP. Findings depict that interaction terms of OFDI with technology and trade openness have a positive association with the environment quality. Finally, OFDI and natural resources have positive moderation on CFP. This study contributes to the existing literature by suggesting policy implications for a sustainable environment.

Do foreign direct investment and environmental regulation improve green technology innovation? An empirical analysis based on panel data from the Chinese manufacturing industry

The environmental regulation and foreign direct investment (FDI) inflow have an important impact on the progress of green technology. This study analyzes the impacts of environmental regulation and FDI on green technology innovation (GTI) based on the panel data of 13 Chinese manufacturing sectors. The results of static panel regression show that the environmental regulation has a positive impact on GTI, while the FDI has a negative impact. The results of the panel threshold model reveal that the effect of environmental regulation on GTI presents a nonlinear shape. The negative effect of FDI on GTI is strengthened when the environmental regulation exceeds its threshold. Increasing FDI inflow can inhibit the effect of environmental regulation. Meanwhile, a strict environmental regulation can enhance the inhibiting effect of FDI on GTI. The FDI inflow into high-tech manufacturing sectors has a less negative impact on GTI than the FDI inflow into low-tech sectors in the case of the enhancement of environmental regulation. This study provides some implications for the formulation of environmental regulation and the FDI inflow into China to improve the GTI.

Environmental concerns and pollution control in the context of developing countries

In the developing countries, the pace of change-in vital technologies, in scientific research, in economic fundamentals, in the living environment, and in pursuing quality of life-is accelerating every day, propelled by continuous changes in technology innovation, human activities, and the rapidly evolving demands of the COVID-19 pandemic. This special issue (SI) of Environmental Science and Pollution Research (ESPR) collected 17 peer-reviewed articles relating to green buildings research, the impact of climate change on the extreme weather events, forward osmosis membranes for water reuse, the impacts of human activities to fragile water environments and economy, air pollution control and carbon emission reduction, risk assessment of pollution hazard and water resources, adsorption reaction of antibiotic pollution in subsurface, synthesized novel adsorptive materials in response to nitrogen and phosphorus, dye, and toluene pollution. All selected papers were relevance to the theme of this SI and formally presented at the 2020 5th International Conference on Advances in Energy and Environment Research (ICAEER 2020) on September 18th-20th, 2020, Shanghai, China. For the safety of the participants, ICAEER 2020 was held via online presentation because of the coronavirus pandemic sweeping across all over the world. As an annually held conference, the upcoming 6th ICAEER 2021 is scheduled held in Shanghai from September 10 to 12, 2021 ( http://www.icaeer.org/index.html ). The guest editor (GE) of this SI welcomes you all to participate in this conference.

Preventing a rebound in carbon intensity post-COVID-19 - lessons learned from the change in carbon intensity before and after the 2008 financial crisis

The carbon emission rebound of the post-2008 financial crisis teaches us a lesson that avoiding a rebound in carbon intensity is key to prevent the carbon emission increase afterward. Although how carbon emission will change the world after the COVID-19 pandemic is unknown, it is urgent to learn from the past and avert or slow down the potential rebound effect. Therefore, this study aims to identify key drivers of carbon intensity changes of 55 sectors, applying the decomposition techniques and the world input-output data. Our results demonstrate that global carbon intensity fluctuates drastically when shocked by the global financial crisis, presenting an inversed-V shape for the period 2008-2011. Industrial carbon emission and gross output vary among different industries, the growth rate of industrial carbon intensity varies from -55.55% to 23.77%. The energy intensity effect and economic structure effect have opposite impacts on carbon intensity decrease, accelerating and hindering the decreasing carbon intensity, respectively. However, the energy mix effect has a minor impact on carbon intensity decrease. The industrial carbon intensity decomposition results show the impact of technological and structural factors are significantly different among industries. Moreover, the impact of energy intensity is slightly stronger than the energy mix. More measures targeting avoiding the rebound in carbon intensity should be developed.