Wang Xue

                                                                                                      School of Finance and Trade

Abstract: The economy of the world has developed rapidly since the industrial revolution. However, Greenhouse effect, environmental pollution, energy depletion and other problems emerged gradually in a booming economy in recent years, which draw people’s attention. To find a way in which we can produce and live with less environmental pollution, less consumption of energy has become the common aspiration of people around the world. As the largest developing country, China has made remarkable achievements in economic development in recent years. Foreign Direct Investment play an important role in social and economic development of China, but it also caused environmental pollution and energy consumption in some way, a majority of experts began to study this phenomenon. This article takes statics in foreign investment, environmental pollution and energy consumption dating from 1997 to 2007 for empirical analysis to test how the amount and structure of Foreign Direct Investment affect environmental pollution and consumption of energy. So, we can draw such a conclusion that not only the amount of Foreign Direct Investment has an impact on low-carbon economic development, but also the structure of it shouldn’t be ignored. Then, this article gives some suggestions on how to make a better structure of FDI, so that it will play a good role on low-carbon economy. This paper can be divided into five parts. Part I: Introduction. This part describes f the background, the significance of the theme. Domestic and foreign articles is also briefly reviewed and the innovation and in adequation of this paper is stated. Part II: Theoretical basis. This part mainly elaborates the theoretical basis of the low carbon economy. Namely the theory of sustainable development and the effect of foreign direct investment on the environment and energy, of which "pollution haven hypothesis" is more well-known. Part III: The situation of China's high-carbon economy. This part elaborates the energy consumption of China, the waste emissions of China and the policies and regulations which are made to develop the low-carbon economy. Part IV: The structure of Foreign Direct Investment in China. Part V: Empirical Analysis of low carbon economy in China. In this paper, methods such as Granger causality test and cointegration test are used to test how FDI affects the consumption of energy and environmental pollution. Part VI: Suggestions on how to optimize structure of FDI. Based on the analysis above, four pieces of suggestions are given in this chapter.

Read the full article here:       低碳经济背景下优化我国外资结构问题研究.pdf