Foreign direct investment and environmental pollution in China: A simultaneous equations estimation

Qun Bao; Yuanyuan Chen; Ligang Song

doi:10.1017/S1355770X10000380

Foreign direct investment and environmental pollution in China: A simultaneous equations estimation

Qun Bao^*, Yuanyuan Chen, Ligang Song

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

93 Citations (Scopus)

Abstract

This study investigates the effects of foreign direct investment (FDI) on emissions of five pollutants in China using a panel data set of 29 provinces over the period 1992-2004. The study applies a simultaneous equations estimation technique to estimate the scale, technique and composition effects of FDI on China's overall and regional pollution emissions. The estimation results show that FDI in general helps reduce pollution emissions in China, contributing largely to its technique effect. Capturing both the direct and indirect technique effects improves the accuracy in assessing the environmental impact of the FDI. The study also finds that the environmental impacts of FDI vary significantly among different regions and for different pollutants in China.

Original language	English
Pages (from-to)	71-92
Number of pages	22
Journal	Environment and Development Economics
Volume	16
Issue number	1
DOIs	https://doi.org/10.1017/S1355770X10000380
Publication status	Published - Feb 2011

Access to Document

10.1017/S1355770X10000380

Cite this

@article{e615d087ebad411684b386dbf614b287,

title = "Foreign direct investment and environmental pollution in China: A simultaneous equations estimation",

abstract = "This study investigates the effects of foreign direct investment (FDI) on emissions of five pollutants in China using a panel data set of 29 provinces over the period 1992-2004. The study applies a simultaneous equations estimation technique to estimate the scale, technique and composition effects of FDI on China's overall and regional pollution emissions. The estimation results show that FDI in general helps reduce pollution emissions in China, contributing largely to its technique effect. Capturing both the direct and indirect technique effects improves the accuracy in assessing the environmental impact of the FDI. The study also finds that the environmental impacts of FDI vary significantly among different regions and for different pollutants in China.",

author = "Qun Bao and Yuanyuan Chen and Ligang Song",

year = "2011",

month = feb,

doi = "10.1017/S1355770X10000380",

language = "English",

volume = "16",

pages = "71--92",

journal = "Environment and Development Economics",

issn = "1355-770X",

publisher = "Cambridge University Press",

number = "1",

}

TY - JOUR

T1 - Foreign direct investment and environmental pollution in China

T2 - A simultaneous equations estimation

AU - Bao, Qun

AU - Chen, Yuanyuan

AU - Song, Ligang

PY - 2011/2

Y1 - 2011/2

N2 - This study investigates the effects of foreign direct investment (FDI) on emissions of five pollutants in China using a panel data set of 29 provinces over the period 1992-2004. The study applies a simultaneous equations estimation technique to estimate the scale, technique and composition effects of FDI on China's overall and regional pollution emissions. The estimation results show that FDI in general helps reduce pollution emissions in China, contributing largely to its technique effect. Capturing both the direct and indirect technique effects improves the accuracy in assessing the environmental impact of the FDI. The study also finds that the environmental impacts of FDI vary significantly among different regions and for different pollutants in China.

AB - This study investigates the effects of foreign direct investment (FDI) on emissions of five pollutants in China using a panel data set of 29 provinces over the period 1992-2004. The study applies a simultaneous equations estimation technique to estimate the scale, technique and composition effects of FDI on China's overall and regional pollution emissions. The estimation results show that FDI in general helps reduce pollution emissions in China, contributing largely to its technique effect. Capturing both the direct and indirect technique effects improves the accuracy in assessing the environmental impact of the FDI. The study also finds that the environmental impacts of FDI vary significantly among different regions and for different pollutants in China.

UR - http://www.scopus.com/inward/record.url?scp=79957479166&partnerID=8YFLogxK

U2 - 10.1017/S1355770X10000380

DO - 10.1017/S1355770X10000380

M3 - Article

SN - 1355-770X

VL - 16

SP - 71

EP - 92

JO - Environment and Development Economics

JF - Environment and Development Economics

IS - 1

ER -

Foreign direct investment and environmental pollution in China: A simultaneous equations estimation

Abstract

Access to Document

Other files and links

Fingerprint

Cite this