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How to achieve net-zero carbon emission? Evidence from energy-biased technical change

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  • Ling, Long
  • Hu, Lu
  • Zhao, Xing

Abstract

As industrialization has advanced, carbon emissions (CE) from the industrial sector have become a growing concern. Understanding the factors influencing CE is crucial for promoting low-carbon development. However, the empirical research examining the relationship between energy-biased technical change (NTC) and CE remains limited. In this paper, we investigate the impact of NTC on CE using prefecture-level data from 270 Chinese cities between 2011 and 2020. The key findings are as follows: (1) NTC significantly contributes to reducing CE, a result that holds after endogeneity and robustness tests. (2) Heterogeneity analysis reveals that NTC has a more pronounced effect in cities with high industrial agglomeration (INA), strong green innovation capacity (CIA), and high financial support (FIS). (3) NTC reduces CE by enhancing of innovation factor allocation efficiency (FAE), promoting industrial green transformation (IGT), and alleviating financing constraints (FIC). These findings not only contribute to the literature on NTC and CE, but also offer valuable insights for policymakers aiming to foster sustainable low-carbon development.

Suggested Citation

  • Ling, Long & Hu, Lu & Zhao, Xing, 2025. "How to achieve net-zero carbon emission? Evidence from energy-biased technical change," Energy, Elsevier, vol. 329(C).
    • Handle: RePEc:eee:energy:v:329:y:2025:i:c:s0360544225022844
    DOI: 10.1016/j.energy.2025.136642
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