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The reverse technology spillover effect of outward foreign direct investment, energy efficiency and carbon emissions

Author

Listed:
  • Qizhen Wang

    (Nanjing Xiaozhuang University)

  • Rong Wang

    (Nanjing Xiaozhuang University)

  • Suxia Liu

    (Zhengzhou University)

Abstract

The rapid development of China’s economy has been accompanied by high levels of energy consumption and pollution. This development mode poses great challenges to the sustainable development of China’s economy and environment, and it also creates contradictions in regional environmental governance. To realize healthy, harmonious and sustainable economic development, improving technology, enhancing energy efficiency and reducing energy consumption and carbon emissions have become choices that China has to make for intensive economic growth. In this study, we first estimate energy efficiency at the provincial level in China with the super-efficiency data envelopment analysis (SE-DEA) model; we then analyze the current status of carbon emissions and estimate the reverse technology spillover effect of outward foreign direct investment (OFDI). Second, Tobit regression and fixed effects models are used to test the impact of the reverse technology spillovers of OFDI and energy efficiency on carbon emissions, and the instrumental variable method is used to test for endogeneity. The regression results of various methods prove that our conclusion is robust. Finally, the mediating effect of energy efficiency is estimated, confirming that the reverse technology spillovers of OFDI not only directly affect carbon emissions but also indirectly affect carbon emissions through energy efficiency. Based on the research above, we propose policy recommendations for using the reverse technology spillovers of OFDI to improve energy efficiency and reduce carbon emissions.

Suggested Citation

  • Qizhen Wang & Rong Wang & Suxia Liu, 2024. "The reverse technology spillover effect of outward foreign direct investment, energy efficiency and carbon emissions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 17013-17035, July.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:7:d:10.1007_s10668-023-03323-9
    DOI: 10.1007/s10668-023-03323-9
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