Measurement and Driving Factors of Carbon Emissions Embodied in China’s Domestic and Foreign EnterprisesThe MRIO-SDA Decomposition Based on the OECD-AMNE Database

Purpose/Significance Under “Dual Carbon” goal, measuring the carbon emissions and driving factors of domestic and foreign enterprises in China can reasonably define China’s carbon emission responsibility, and achieve win-win development between foreign investment and the environment. Design/Methodology Based on the Activity of Multinational Enterprises database released by the Organization for Economic Co-operation and Development, this paper uses the Multi-regional Input Output model and the Structural Decomposition Analysis to calculate and decompose the carbon emissions of Chinese domestic and foreign companies. Conclusions/Findings During the study period, 10% to 15% of carbon emissions came from foreign enterprises, therefore China’s carbon emission responsibility is overestimated under the production-based approach. The FDI inflows have little effect on the carbon emissions of Chinese domestic companies. The decrease in carbon emission coefficients of coal consumption in the carbon-intensive industries is the most important factor in curbing the carbon emissions of domestic and foreign companies; the final demand of domestic companies and the export of foreign companies significantly promote the carbon emissions of domestic and foreign companies. To sum up, clearly defining China’s carbon emission responsibilities, promoting carbon emission reduction cooperation between domestic and foreign enterprises, and reducing the consumption of coal-based fossil energy are effective ways to achieve the “Dual Carbon” goal.