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Do renewable energy technology innovations promote China's green productivity growth? Fresh evidence from partially linear functional-coefficient models

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  • Yan, Zheming
  • Zou, Baoling
  • Du, Kerui
  • Li, Ke

Abstract

Renewable energy technology innovation can benefit the environment by promoting green productivity, as proposed by existing theoretical studies. However, recent uneven developments of both environmental performance and renewable energy technology among regions in China remind us to revisit the above theoretical link. In this paper, we relax the hypothesized homogeneity and linearity in traditional empirical models to investigate the effects of renewable energy technology innovation on China's green productivity. The results of the partially linear functional-coefficient models show that the effect of renewable energy technological innovation on green productivity is significant only when the relative income level of a province passes a critical turning point. Beyond the turning point, such an effect increases with the growth of relative income levels. Finally, we provide provincial specific policy implications based on the estimated nonparametric relationship between renewable energy technology innovation and green productivity.

Suggested Citation

  • Yan, Zheming & Zou, Baoling & Du, Kerui & Li, Ke, 2020. "Do renewable energy technology innovations promote China's green productivity growth? Fresh evidence from partially linear functional-coefficient models," Energy Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:eneeco:v:90:y:2020:i:c:s0140988320301821
    DOI: 10.1016/j.eneco.2020.104842
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    More about this item

    Keywords

    Renewable energy technology innovations; Green productivity; Income; Partially linear functional-coefficient model;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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