Abstract
As the “Going Out” strategy has been introduced after WTO accession and post-crisis era, besides the economic effects, outward foreign direct investment (OFDI) from China has been boomed, along with its boosted foreign trade during industrial upgrading. However, these efforts have been found to cause significant global environmental issues, which have been rarely mentioned and discussed systematically, especially from the perspective of spatial intercorrelation between environment and cross-border investment, international trade, institutional factors, and rising environmental impacts from China. On that basis, this study is conducted by the spatial econometric models in a macroeconomic panel of 146 countries and regions in 2003–2016 to empirically delve into the spatial intercorrelation and third-country effects of carbon dioxide (CO2) emissions per capita among the observed areas, under China's impacts. The empirical results first confirm the existence of spatial autocorrelation for CO2 emissions per capita by Moran's I statistic, suggesting that an interregional prevention system is supposed to be implemented to sufficiently reduce global CO2 emissions. Furthermore, as suggested by the spatial Durbin model, local government should show a close economic relationship with neighboring countries to attract spatial spillover effects of China's OFDI and then develop a multinational economic partnership that enables the high level of technology and human capital to move freely, as an attempt to lower the level of CO2 emissions in a whole range. Moreover, political and resource and energy purposes in the foreign investment and trade activities of Chinese government and multinationals should be progressively limited, and economic cooperation with more developed markets in a higher degree of environmental regulations and standards involved in a coordinated multilateral agreement should be conducted for sustainability and global emission reduction
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Anselin, L. (1988). Lagrange multiplier test diagnostics for spatial dependence and spatial heterogeneity. Geographical Analysis, 20(1), 1–17. https://doi.org/10.1111/j.1538-4632.1988.tb00159.x
Anselin, L., Bera, A. K., Florax, R., & Yoon, M. J. (1996). Simple diagnostic tests for spatial dependence. Regional Science and Urban Economics, 26(1), 77–104. https://doi.org/10.1016/0166-0462(95)02111-6
Anselin, L., & Florax, R. J. G. M. (1995). Small sample properties of tests for spatial dependence in regression models: Some further results. In L. Anselin & R. J. G. M. Florax (Eds.), New directions in spatial econometrics. Advances in spatial science (pp. 21–74) Springer. https://doi.org/10.1007/978-3-642-79877-1_2
Ding, T., Ning, T. D., & Zhang, Y. (2017). The contribution of China’s outward foreign direct investment (OFDI) to the reduction of global CO2 emissions. Sustainability, MDPI, Open Access Journal, 9(5), 1–15. https://doi.org/10.3390/su9050741
Grimes, P., & Kentor, J. (2003). Exporting the greenhouse: Foreign capital penetration and CO2 emissions 1980–1996. Journal of World-Systems Research, 9(2), 261–275. https://doi.org/10.5195/jwsr.2003.244
Grossman, G. M., & Krueger, A. B. (1991). Environmental impacts of a North American Free Trade Agreement. NBER Working Papers 3914, National Bureau of Economic Research, Inc. https://doi.org/10.3386/w3914
Hao, Y., & Liu, Y. (2015). Has the development of FDI and foreign trade contributed to China’s CO2 emissions? An empirical study with provincial panel data. Natural Hazards, 76, 1079–1091. https://doi.org/10.1007/s11069-014-1534-4
Krugman, P. (1991). Geography and trade. The MIT Press.
Kwan, C. H. (2013, June 5). Trade structure of China becoming more sophisticated: Changing complementary and competitive relationships with other countries. Research Institute of Economy, Trade and Industry. https://www.rieti.go.jp/en/china/13060502.html
Lee, L. F., Liu, X. D., & Lin, X. (2010). Specification and estimation of social interaction models with network structures. The Econometrics Journal, 13(2), 145–176. https://doi.org/10.1111/j.1368-423X.2010.00310.x
LeSage, J. P., & Pace, K. R. (2009). Introduction to spatial econometrics (1st ed.). Chapman and Hall/CRC.
Lian, T. H., Ma, T. Y., Cao, J., & Wu, Y. (2016). The effects of environmental regulation on the industrial location of China’s manufacturing. Journal of the International Society for the Prevention and Mitigation of Natural Hazards, 80, 1381–1403. https://doi.org/10.1007/s11069-015-2008-z
Liu, J. (2019). The spatial proximity effect of host country characteristics on China’s OFDI—An empirical data analysis based on “One Belt and One Road” countries. Economic Survey, 36(1), 56–63.
Liu, Z., Davis, S. J., Feng, K., Klaus, H., Liang, S., Chen, B., Liu, J. R., Yan, J. Y., Guan, D. B., & Anadon, L. D. (2016). Targeted opportunities to address the climate-trade dilemma in China. Nature Climate Change, 6, 201–208. https://doi.org/10.1038/nclimate2800
Ma, S. Z., & Liu, M. H. (2016). Research on the third-country effects of China’s outward foreign direct investment in countries along “One Belt and One Road”: Based on spatial econometric method. Journal of International Trade, 07, 72–83. https://doi.org/10.13510/j.cnki.jit.2016.07.007-en
Ning, Y. D., Ding, T., & Li, X. (2016). Character of China embodied carbon emissions within the trade. Smart Science, 3(2), 108–116. https://doi.org/10.1080/23080477.2015.11665644
Paas, T., & Schlitte, F. (2006). Regional income inequality and convergence processes in the EU-25. HWWA Discussion Papers 355, Hamburg Institute of International Economics (HWWA). https://www.hwwi.org/typo3_upload/groups/4/Nutzer/Klimapolitik/Alle/Dissertationsprojekte/DP_355.pdf
Paelinck, J. H. P., & Klaassen, L. H. (1979). Spatial econometrics. Gower Press.
Perkins, R., & Neumayer, E. (2012). Do recipient country characteristics affect international spillovers of CO2 efficiency via trade and foreign direct investment. Climatic Change, 112, 469–491. https://doi.org/10.1007/s10584-011-0204-8
Shi, Z. K., Shao, J., & Wang, M. C. (2017). Impacts of FDI on the haze pollution in temporal-spatial dimension: Based on the SpVAR model. Journal of International Trade, 09, 107–117. https://doi.org/10.13510/j.cnki.jit.2017.09.010-en
Venables, A. J. (2008). New economic geography (Palgrave Macmillan, Ed.), The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. (Original work published 2016).
Wang, Y. F., Malik, A., Xu, L. X., & Liao, M. (2019). Carbon emission effects of the coordinated development of two-way foreign direct investment in China. Sustainability, 11(8), 2428. https://doi.org/10.3390/su11082428
Zhang, C. G., & Zhou, X. X. (2016). Does foreign direct investment lead to lower CO2 emissions? Evidence from a regional analysis in China. Renewable and Sustainable Energy Reviews, 58, 943–951. https://doi.org/10.1016/j.rser.2015.12.226
Zhao, Y. H., Wang, S., Zhang, Z. H., Liu, Y., & Ahmad, A. (2016a). Driving factors of carbon emissions embodied in China–US trade: A structural decomposition analysis. Journal of Cleaner Production, 131, 678–689. https://doi.org/10.1016/j.jclepro.2016.04.114
Zhao, Y. H., Wang, S., Zhang, Z. H., & Yang, J. Q. (2016b). Input-output analysis of carbon emissions embodied in China–Japan trade. Applied Economics, 48(16), 1515–1529. https://doi.org/10.1080/00036846.2015.1102845
Acknowledgements
This paper did not receive any specific grant from funding agencies in the public, commercial, or non-profit sectors.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Song, Z. (2021). The Spatial Intercorrelation of Global Carbon Dioxide Emissions: An Empirical Verification of China’s Impacts by Spatial Durbin Panel Data Model. In: Alalouch, C., Piselli, C., Cappa, F. (eds) Towards Implementation of Sustainability Concepts in Develo** Countries. Advances in Science, Technology & Innovation. Springer, Cham. https://doi.org/10.1007/978-3-030-74349-9_24
Download citation
DOI: https://doi.org/10.1007/978-3-030-74349-9_24
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-74348-2
Online ISBN: 978-3-030-74349-9
eBook Packages: Earth and Environmental ScienceEarth and Environmental Science (R0)