This article examines how good governance and technological innovation complement foreign direct investment (FDI) to mitigate carbon emissions in twenty-three emerging economies for the period 1996-2014. Based on the Generalized Method of Moments (GMM) approach, we established the following results: First, from the non-interactive regressions, FDI inflows have positive effects on the four indicators of carbon emissions while increasing governance quality and technological innovation have negative effects on these indicators. Second, from the interactive regressions, the interactions between FDI and both political and institutional governance decrease the level of CO2 emissions. Moreover, the interactions between technological innovation and FDI reduce CO2 emissions in all the estimated models, except in the model pertaining to CO2 emissions from electricity and heat production; as a result, environmental quality is improved. Policy implications and future research directions are also discussed.

中文翻译：

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外国投资和空气污染：善政和技术创新重要吗？

本文探讨了良好的治理和技术创新如何补充外国直接投资（FDI），以减少1996-2014年期间23个新兴经济体的碳排放。基于广义矩法（GMM），我们得出以下结果：首先，从非交互式回归来看，外国直接投资流入对碳排放的四个指标具有积极影响，而治理质量的提高和技术创新则对碳排放产生负面影响。这些指标。第二，从互动回归来看，外国直接投资与政治和制度治理之间的互动降低了二氧化碳的排放水平。此外，在所有估算的模型中，技术创新与外国直接投资之间的相互作用都会减少二氧化碳的排放，除与电力和热生产产生的二氧化碳排放有关的模型外；结果，改善了环境质量。还讨论了政策含义和未来的研究方向。