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Carbon Emission and the Fixed Asset Investment of Financial Industry: Evidence from Chinese Provincial Data

Received: 13 November 2018     Published: 11 December 2018
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Abstract

This study examines the effect of the structure of investment in the fixed asset on provincial carbon emission in China, and investigates the channels behind this effect. Using a panel of the provincial data from 2003 to 2016, we identify the significant negative relationship between fixed asset investment of finance and local carbon emission in China. We further apply spatial econometric empirical strategy to explore the spatial effect of fixed asset investment of finance on the provincial carbon emission. Using the adjacent matrix, distance matrix and gravity matrix, it is found that the effect is similar when the spatial correlation influence is considered and to some extent, local investment in the fixed asset of financial industry may give rise to the increase of carbon emission of the surrounding provinces. Moreover, after considering the regional heterogeneity, partial evidence indicates that this negative effect only exists in the sample of eastern part provinces. Furthermore, this study also finds two channels that fixed asset investment of financial industry affects local carbon emission: financial market and the related technological innovations. Through developing financial market and improving technical innovation, the fixed asset investment of financial industry reduces the local carbon emission level. In addition, a relevant case is constructed and we found that financial fixed asset investment promotes technology transfer as well. Using relevant variables, proxies and different estimation models, the results are found robust. This paper contributes to provide a new insight into the influence of structure of fixed asset investment on carbon emission.

Published in International Journal of Environmental Monitoring and Analysis (Volume 6, Issue 5)
DOI 10.11648/j.ijema.20180605.12
Page(s) 131-143
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Carbon Emission, Finance, Fixed Asset Investment

References
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Cite This Article
  • APA Style

    Yang Cai, Ke Gao, Yongsheng Wang, Xiaojing Hao. (2018). Carbon Emission and the Fixed Asset Investment of Financial Industry: Evidence from Chinese Provincial Data. International Journal of Environmental Monitoring and Analysis, 6(5), 131-143. https://doi.org/10.11648/j.ijema.20180605.12

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    ACS Style

    Yang Cai; Ke Gao; Yongsheng Wang; Xiaojing Hao. Carbon Emission and the Fixed Asset Investment of Financial Industry: Evidence from Chinese Provincial Data. Int. J. Environ. Monit. Anal. 2018, 6(5), 131-143. doi: 10.11648/j.ijema.20180605.12

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    AMA Style

    Yang Cai, Ke Gao, Yongsheng Wang, Xiaojing Hao. Carbon Emission and the Fixed Asset Investment of Financial Industry: Evidence from Chinese Provincial Data. Int J Environ Monit Anal. 2018;6(5):131-143. doi: 10.11648/j.ijema.20180605.12

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  • @article{10.11648/j.ijema.20180605.12,
      author = {Yang Cai and Ke Gao and Yongsheng Wang and Xiaojing Hao},
      title = {Carbon Emission and the Fixed Asset Investment of Financial Industry: Evidence from Chinese Provincial Data},
      journal = {International Journal of Environmental Monitoring and Analysis},
      volume = {6},
      number = {5},
      pages = {131-143},
      doi = {10.11648/j.ijema.20180605.12},
      url = {https://doi.org/10.11648/j.ijema.20180605.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijema.20180605.12},
      abstract = {This study examines the effect of the structure of investment in the fixed asset on provincial carbon emission in China, and investigates the channels behind this effect. Using a panel of the provincial data from 2003 to 2016, we identify the significant negative relationship between fixed asset investment of finance and local carbon emission in China. We further apply spatial econometric empirical strategy to explore the spatial effect of fixed asset investment of finance on the provincial carbon emission. Using the adjacent matrix, distance matrix and gravity matrix, it is found that the effect is similar when the spatial correlation influence is considered and to some extent, local investment in the fixed asset of financial industry may give rise to the increase of carbon emission of the surrounding provinces. Moreover, after considering the regional heterogeneity, partial evidence indicates that this negative effect only exists in the sample of eastern part provinces. Furthermore, this study also finds two channels that fixed asset investment of financial industry affects local carbon emission: financial market and the related technological innovations. Through developing financial market and improving technical innovation, the fixed asset investment of financial industry reduces the local carbon emission level. In addition, a relevant case is constructed and we found that financial fixed asset investment promotes technology transfer as well. Using relevant variables, proxies and different estimation models, the results are found robust. This paper contributes to provide a new insight into the influence of structure of fixed asset investment on carbon emission.},
     year = {2018}
    }
    

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  • TY  - JOUR
    T1  - Carbon Emission and the Fixed Asset Investment of Financial Industry: Evidence from Chinese Provincial Data
    AU  - Yang Cai
    AU  - Ke Gao
    AU  - Yongsheng Wang
    AU  - Xiaojing Hao
    Y1  - 2018/12/11
    PY  - 2018
    N1  - https://doi.org/10.11648/j.ijema.20180605.12
    DO  - 10.11648/j.ijema.20180605.12
    T2  - International Journal of Environmental Monitoring and Analysis
    JF  - International Journal of Environmental Monitoring and Analysis
    JO  - International Journal of Environmental Monitoring and Analysis
    SP  - 131
    EP  - 143
    PB  - Science Publishing Group
    SN  - 2328-7667
    UR  - https://doi.org/10.11648/j.ijema.20180605.12
    AB  - This study examines the effect of the structure of investment in the fixed asset on provincial carbon emission in China, and investigates the channels behind this effect. Using a panel of the provincial data from 2003 to 2016, we identify the significant negative relationship between fixed asset investment of finance and local carbon emission in China. We further apply spatial econometric empirical strategy to explore the spatial effect of fixed asset investment of finance on the provincial carbon emission. Using the adjacent matrix, distance matrix and gravity matrix, it is found that the effect is similar when the spatial correlation influence is considered and to some extent, local investment in the fixed asset of financial industry may give rise to the increase of carbon emission of the surrounding provinces. Moreover, after considering the regional heterogeneity, partial evidence indicates that this negative effect only exists in the sample of eastern part provinces. Furthermore, this study also finds two channels that fixed asset investment of financial industry affects local carbon emission: financial market and the related technological innovations. Through developing financial market and improving technical innovation, the fixed asset investment of financial industry reduces the local carbon emission level. In addition, a relevant case is constructed and we found that financial fixed asset investment promotes technology transfer as well. Using relevant variables, proxies and different estimation models, the results are found robust. This paper contributes to provide a new insight into the influence of structure of fixed asset investment on carbon emission.
    VL  - 6
    IS  - 5
    ER  - 

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Author Information
  • School of Management Science and Engineering, Central University of Finance and Economics, Beijing, P. R. China

  • PBC School of Finance, Tsinghua University, Beijing, P. R. China

  • School of Management Science and Engineering, Central University of Finance and Economics, Beijing, P. R. China

  • School of Public Finance and Tax, Central University of Finance and Economics, Beijing, P. R. China

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