Can Two-Way FDI Coordination Reduce Carbon Emissions?

Based on the data of two-way FDI and carbon emissions in 30 provinces in China, this paper establishes a baseline regression model, and uses the mediation effect to test the scale effect, technology effect and structural effect of two-way FDI coordination on carbon emissions. In particular, this paper incorporates two-way FDI into an analytical model, and the moderating effect of environmental regulation is also innovatively introduced. The results show that two-way FDI coordination has a significant inhibiting effect on carbon emissions. The mediating effect mechanism indicates that two-way FDI coordination inhibits carbon emission intensity through scale effect and technology effect, while structural effects lead to an increase in carbon emissions. Environmental regulation has a significant moderating effect on the scale, technology and structure of two-way FDI, and the increase in environmental regulation has brought significant carbon emission reduction.