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Innovation and energy productivity: An empirical study of the innovative city pilot policy in China✰

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  • Yu, Yantuan
  • Chen, Xudong
  • Zhang, Ning

Abstract

Technological innovation reduces energy costs, accelerates energy transition, and is a key driver of economic growth. However, it has inconclusive effects on energy productivity, which is calculated as the ratio of economic output to energy consumption. In this study, we empirically investigated the effects of China's innovative city pilot policy (ICPP) on energy productivity using a difference-in-differences (DID) framework. The empirical findings revealed that in China, the implementation of the ICPP has led to an economically and statistically significant improvement in energy productivity and the magnitude of increase was estimated to be approximately 15% based on DID and matched DID analyses. We tested and confirmed the robustness of our results and conducted mechanism analysis to examine the three channels through which the ICPP exerts its effect on energy productivity, namely innovation quality, research and development expenditure, and innovation behavior.

Suggested Citation

  • Yu, Yantuan & Chen, Xudong & Zhang, Ning, 2022. "Innovation and energy productivity: An empirical study of the innovative city pilot policy in China✰," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    • Handle: RePEc:eee:tefoso:v:176:y:2022:i:c:s0040162521008611
    DOI: 10.1016/j.techfore.2021.121430
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    4. Shaoyan Yang & Duodong Ding & Churen Sun, 2022. "Does Innovative City Policy Improve Green Total Factor Energy Efficiency? Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-30, October.
    5. Zhengjun Hu & Shanshan Li, 2023. "Innovation-Driven Policy and Low-Carbon Technology Innovation: Research Driven by the Impetus of National Innovative City Pilot Policy in China," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    6. Hongge Zhu & Zhenhuan Chen & Shaopeng Zhang & Wencheng Zhao, 2022. "The Role of Government Innovation Support in the Process of Urban Green Sustainable Development: A Spatial Difference-in-Difference Analysis Based on China’s Innovative City Pilot Policy," IJERPH, MDPI, vol. 19(13), pages 1-19, June.
    7. Cong Wei & Jiayang Kong, 2022. "The Effect of Innovation City Construction on Carbon Emissions in China," Land, MDPI, vol. 11(7), pages 1-14, July.
    8. Zhang, Ning & Zhao, Yu & Wang, Na, 2022. "Is China's energy policy effective for power plants? Evidence from the 12th Five-Year Plan energy saving targets," Energy Economics, Elsevier, vol. 112(C).
    9. Rongrong Shi & Dian Song & Guoqiang Rui & Hainan Wu, 2022. "How the Establishment of the National Civilized City Promotes Urban Green Development: From the Perspective of Administrative Competing Theory—A Quasi Experiment Study in China," IJERPH, MDPI, vol. 19(17), pages 1-18, September.
    10. Hong Yu & Jianmin Zhang & Ning Xu, 2023. "Does National Independent Innovation Demonstration Zone Construction Help Improve Urban Green Total Factor Productivity? A Policy Assessment from China," Sustainability, MDPI, vol. 15(9), pages 1-16, April.
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    More about this item

    Keywords

    Innovation; Innovative city pilot policy; Energy productivity; Difference-in-differences; China;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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