Foreign direct investment and the structural transition of energy consumption: impact and mechanisms

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Xuất bản năm:Humanities & Social Sciences Communications vol. 11, no. 1 (Dec 2024), p. 1759
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Springer Nature B.V.
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045 2 |b d20241201  |b d20241231 
245 1 |a Foreign direct investment and the structural transition of energy consumption: impact and mechanisms 
260 |b Springer Nature B.V.  |c Dec 2024 
513 |a Journal Article 
520 3 |a The development of renewable energy is an important pathway to realize the structural transition of energy consumption. This study investigates the impact and mechanism of foreign direct investment (FDI) on transforming the host countries’ energy consumption structure to renewable energy. We conducted empirical tests using cross-country panel data of 65 economies from 2000 to 2020. The results revealed that FDI significantly negatively impacts the structural transition of energy consumption in host countries. The mechanism analysis established that the industry transfer and technology spillover effects of FDI are not conducive to transforming the host country’s energy consumption structure to renewable energy. Heterogeneity analysis revealed that FDI has a greater negative impact on the renewable energy consumption structure in low-income countries and non-OECD countries, as well as in countries with high levels of agricultural and manufacturing development and low levels of service sector development. Moreover, the Kyoto Protocol is not conducive to the increase in the proportion of renewable energy consumption in host countries. By contrast, the negative impact of FDI has been effectively mitigated after signing the Paris Agreement. Further analysis determined that improving governance capacity effectively inhibits the negative impact of FDI on the renewable energy consumption structure. The findings provide a theoretical basis for accurately identifying the effects of FDI on energy structure, while also providing policy insights for countries to formulate and improve their sustainable development efforts. 
653 |a Energy industry 
653 |a Sustainable development 
653 |a Hypotheses 
653 |a Carbon 
653 |a Environmental regulations 
653 |a Renewable resources 
653 |a Foreign investment 
653 |a Research design 
653 |a Energy efficiency 
653 |a Host country 
653 |a Environmental impact 
653 |a Literature reviews 
653 |a Energy transition 
653 |a Research & development--R&D 
653 |a Energy consumption 
653 |a Climate change 
653 |a Pollution 
653 |a Developing countries--LDCs 
653 |a Environmental protection 
653 |a Panel data 
653 |a Governance 
653 |a Spillover effect 
653 |a Energy development 
653 |a Renewable energy 
653 |a Agricultural development 
653 |a Agricultural technology 
653 |a Service industries 
653 |a Low income groups 
773 0 |t Humanities & Social Sciences Communications  |g vol. 11, no. 1 (Dec 2024), p. 1759 
786 0 |d ProQuest  |t Social Science Database 
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