Work

Measuring Global FDI-Embodied Carbon Emissions

Year: 2024

Type: article

Abstract: Foreign direct investment (FDI) significantly impacts global carbon emission patterns through the production and supply chains of transnational corporations (TNCs), influencing climate change governance. This study measures FDI-embodied carbon emissions from 2000 to 2019, using multi-regional input-output and hypothetical extraction methods, and analyzes changes via complex network analysis. Findings reveal a 61% increase in global FDI-embodied carbon emissions, with an upward trend since 2016, mainly due to developing countries. The 2008 financial crisis and Copenhagen Accord shifted carbon flows from concentrated to decentralized patterns. Clustering of these flows continues to rise. Strengthened international cooperation and guidelines are needed to promote green investment, guide TNCs, and achieve the Paris Agreement goals.

Source: Emerging Markets Finance and Trade

DOI: 10.1080/1540496x.2024.2422970

Authors: Yuanyuan Li, Yonghua Li, Yuan Shi, Peng Wang, Yun Zhang

Institutions: Chuxiong Normal University, Shanghai Lixin University of Accounting and Finance, Shanghai University of International Business and Economics

Language: English

Topic: Environmental Impact and Sustainability

Subfield: Environmental Engineering

Field: Environmental Science

Domain: Physical Sciences

SDGs: Climate action, Partnerships for the goals

Open Access status: hybrid

OpenAlex ID: W4404066646

FWCI: 0.477

Cites: 51

Cited by: 4

Related to: 10