How does the import of environmental intermediate goods affect CO(2) emissions? theoretical and empirical research of prefecture-level cities of China

This paper constructs a theoretical model of biased production decisions due to the import of environmental intermediate goods. Additionally, it analyzes the influence of these imports on CO(2) emissions based on the trade and CO(2) emission data of Chinese prefecture-level cities from 2000 to 2016. Furthermore, it empirically explores how environmental intermediate imports affect CO(2) emissions. The study found the following: first, the import of environmental intermediate goods can effectively reduce CO(2) emissions; this conclusion still holds under robustness and endogeneity tests. Second, the carbon emission reduction effect related to the import of environmental intermediate goods is affected by differences in geographical location, environmental pollution, sustainable development ability and government efficiency. Third, the mechanism test found that the import of environmental intermediate goods exerts emission reduction effects through the green technological innovation and industrial structure upgrading mechanisms. The conclusions of the research in this article provide a reference for coordinating trade development and environmental protection.