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Maria Borga, Achille Pegoue, Mr. Gregory M Legoff, Alberto Sanchez Rodelgo, Dmitrii Entaltsev, and Kenneth Egesa

and FDI Flows,20015–15 3. Top 4 Industries by Country of Carbon Emissions Related to GFCF of FDI (Tons per 1 Million US Dollars of Final Demand), 2005–15 4. Carbon Emissions in MNEs Output, 2005–15 Average 5. Carbon Intensities of Output (Tons per 1 Million USD), 2005–15 Average 6. Carbon Intensities of Output (Tons per 1 Million USD), 2005–15 Average 7. Trends in Carbon Intensities of MNEs Output (Tons per 1 Million USD), 2005–15 Average 8. MNE Carbon and Export Intensities, 2005–15 Average 9. Carbon Intensities and Shares of Export Emissions to

Maria Borga, Achille Pegoue, Mr. Gregory M Legoff, Alberto Sanchez Rodelgo, Dmitrii Entaltsev, and Kenneth Egesa
This paper presents estimates of the carbon emissions of FDI from capital formation funded by FDI and the production of foreign-controlled firms. The carbon intensity of capital formation financed by FDI has trended down, driven by reductions in the carbon intensity of electricity generation. Carbon emissions from the operations of foreign-controlled firms are greater than those from their capital formation. High emission intensities were accompanied by high export intensities in mining, transport, and manufacturing. Home country policies to incentivize firms to meet strict emissions standards in both their domestic and foreign operations could be important to reducing emissions globally.
Maria Borga, Achille Pegoue, Mr. Gregory M Legoff, Alberto Sanchez Rodelgo, Dmitrii Entaltsev, and Kenneth Egesa

higher with some exceptions, including Luxemburg and Lithuania. The reverse is also true as economies with higher carbon intensities tend to have smaller gaps between the export shares of emissions of MNEs and DOEs; notable exceptions include China, India, South Africa, Vietnam, and Thailand. Figure 9. Carbon Intensities and Shares of Export Emissions to Output Emissions, 2005–15 Average Source: Authors’ calculations from OECD data. Conclusions and Policy Implications This paper presented an experimental approach for estimating the effect of FDI