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Research into the Correlation between Carbon Emissions, Foreign Energy Investment, and China’s Financial Advancement

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  • Jialong Mi

    (School of Economics & Management, Changsha University of Science & Technology, Changsha 410205, China
    Business School, Hunan International Economics University, Changsha 410205, China)

Abstract

Carbon dioxide emissions are the primary driver of global climate change. This study aims to analyze the relationship between inward foreign direct investment in the energy sector and CO 2 emissions in China versus other countries. For this, the co-integration methods were used. The results suggested that China should encourage the adoption of green technologies in order to reduce CO 2 emissions and enforce strict environmental laws. Another necessary step is to stop the licensing of polluting industries that emit high amounts of CO 2 emissions. The present findings can be used to develop state programs for environmental protection. Future research can examine the relationship of FDI in the energy sector with indicators other than pollution with CO 2 emissions, for example, with the consumption of renewable energy sources.

Suggested Citation

  • Jialong Mi, 2024. "Research into the Correlation between Carbon Emissions, Foreign Energy Investment, and China’s Financial Advancement," Energies, MDPI, vol. 17(16), pages 1-12, August.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:16:p:4021-:d:1455742
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    References listed on IDEAS

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    1. Dario Caldara & Matteo Iacoviello, 2022. "Measuring Geopolitical Risk," American Economic Review, American Economic Association, vol. 112(4), pages 1194-1225, April.
    2. Mirza, Faisal Mehmood & Sinha, Avik & Khan, Javeria Rehman & Kalugina, Olga A. & Zafar, Muhammad Wasif, 2022. "Impact of Energy Efficiency on CO2 Emissions: Empirical Evidence from Developing Countries," MPRA Paper 111923, University Library of Munich, Germany, revised 2022.
    3. Adams, Samuel & Adedoyin, Festus & Olaniran, Eniola & Bekun, Festus Victor, 2020. "Energy consumption, economic policy uncertainty and carbon emissions; causality evidence from resource rich economies," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 179-190.
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    Cited by:

    1. Agnieszka Gałecka & Mariusz Pyra, 2024. "Changes in the Global Structure of Energy Consumption and the Energy Transition Process," Energies, MDPI, vol. 17(22), pages 1-18, November.

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