The impact of foreign direct investment on SO2 emissions in the Beijing-Tianjin-Hebei region: A spatial econometric analysis

Lin Zhu, Qingmei Gan, Yan Liu, Zhijun Yan*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

82 Citations (Scopus)

Abstract

This paper examines the spatial impacts of foreign direct investment (FDI) on sulfur dioxide (SO2) emissions in the Beijing-Tianjin-Hebei region located in northern China. To avoid making coefficient estimation errors, we use spatial panel data on 10 cities in the Beijing-Tianjin-Hebei region for 2000 to 2013. We first analyze the effects of FDI on air pollution levels in the Beijing-Tianjin-Hebei region from ordinary least squares (OLS). Then, the existence of a spatial correlation is examined via a Lagrange Multiplier (LM) test, and the Spatial Durbin Model (SDM) is adopted to investigate the influence of FDI on SO2 emissions in this region. The results show that FDI has a significantly positive impact on SO2 emissions, suggesting that an increase in FDI inflows would increase air pollution levels in the Beijing-Tianjin-Hebei region. Furthermore, the air quality of local cities is also influenced by FDI inflows in surrounding areas.

Original languageEnglish
Pages (from-to)189-196
Number of pages8
JournalJournal of Cleaner Production
Volume166
DOIs
Publication statusPublished - 10 Nov 2017

Keywords

  • Beijing-Tianjin-Hebei region
  • Foreign direct investment
  • Spatial econometric analysis
  • Sulfur dioxide emissions

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