The Impact of Urbanization on CO2 Emissions in China: The Key Role of Foreign Direct Investment

By adopting the dynamic panel threshold approach, this study assesses how foreign direct investment (FDI) shapes the causality between urbanization and CO 2 emissions in China from 1996-2018. The results suggest that a rise in the pace of urbanization increases CO 2 emissions, but this harmful effec...

Full description

Saved in:
Bibliographic Details
Published in:Emerging markets finance & trade 2023-01, Vol.59 (2), p.451-462
Main Authors: Lee, Chi-Chuan, Zhou, Boxu, Yang, Tsung-Yu, Yu, Chin-Hsien, Zhao, Jinsong
Format: Article
Language:English
Subjects:
China
dynamic panel threshold model
emissions
FDI
Urbanization
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:By adopting the dynamic panel threshold approach, this study assesses how foreign direct investment (FDI) shapes the causality between urbanization and CO 2 emissions in China from 1996-2018. The results suggest that a rise in the pace of urbanization increases CO 2 emissions, but this harmful effect becomes weaker after achieving a certain level of foreign capital. We also find that the more developed the technology, financial and government sectors, the more it can promote urbanization to reduce CO 2 emissions. These results offer policy implications for China's urban planning and environmental policy.
ISSN:1540-496X
1558-0938
DOI:10.1080/1540496X.2022.2106843