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

Yang Cai; Ke Gao; Yongsheng Wang; Xiaojing Hao

doi:doi:10.11648/j.ijema.20180605.12

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

Yang Cai, Ke Gao, Yongsheng Wang, Xiaojing Hao

Published in International Journal of Environmental Monitoring and Analysis (Volume 6, Issue 5)

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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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

Yang Cai

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

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

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

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

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Plain Text BibTeX RIS

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

Copy | Download

@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}
}

Copy | Download

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  -

Copy | Download