Study on the inverted N relation and the greenhouse effect impact mechanism between Foreign Direct Investment and carbon emissions

The greenhouse effect was focused by more learners with the global warming. It has become a very serious issue the relationship between foreign direct investment (FDI) and carbon emissions in the process of sustainable economic development in Shandong. This paper studied the relationship trend in middle of FDI, carbon emissions, and greenhouse effect impact mechanism in Shandong Province based on the data from 2000 to 2016 in Shandong Province by simultaneous equation model from qualitative and quantitative analysis. There is an inverted environmental Kuznets curve correlation between FDI and carbon emissions. The mechanism of FDI?s impact on Shandong?s ecological environment in three aspects: scale effect, structure effect, and technology effect. The results show that FDI has negative scale effect, structure effect and positive technology effect on carbon emissions in Shandong Province, and the overall effect is negative. Accordingly, taking the transformation of new and old kinetic energy in Shandong Province as the goal, this paper puts forward the optimization strategy, provides policy suggestions for the government in the implementation of the transformation of new and old kinetic energy, in order to better promote economic development, industrial restructuring and upgrading, and realize the construction of regional ecological civilization.