How developing countries can effectively promote cities’ carbon emission reduction through the carbon emission trading system (ETS) is a topic worthy of attention in the global carbon reduction campaign. Policy changes in China's ETS provide a unique opportunity to measure whether ETS impacts carbon emissions through two-way FDI. Hence, this paper employs difference-in-differences (DID) method to test the causal impact of ETS...

Based on the evidence from listed company microdata and data from 285 cities in China, this paper studies the coordinated development of two-way FDI (CDFDI) in improving green energy efficiency (GEE). In particular, this paper examines the spatial heterogeneity effects of CDFDI on GEE. The results showed that CDFDI had a positive impact on the GEE of local and surrounding cities. Mechanistic examinations show that the effects...

At present, green energy transformation and climate policy are increasingly connected. The need to improve national competitiveness and implement climate and energy strategies means that an energy-consuming country like China must rapidly enhance its green energy efficiency (GEE) and energy consumption structure. The following paper contributes to the existing literature by analyzing the effects of bilateral FDI on GEE from...