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The impact of renewable energy policies on carbon emissions: Empirical evidence from China

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  • Yang, Rui
  • Xu, Hang

Abstract

To address global warming, nations globally have started implementing renewable energy policies (REPs) to encourage the growth of renewable energy sources and their replacement of fossil fuels. However, it is not clear whether the REPs alleviate carbon emissions. In light of this, this study empirically examines the effect of the REPs on carbon emissions using methods of two-way fixed effects model, instrumental variable estimation, and difference-in-differences with city-level panel data from China. According to the empirical analysis, the REPs can greatly aid in lowering carbon emissions. After re-estimating with an alternative variable and considering special cities and confounding carbon-related policies, this conclusion still holds. According to mechanism analysis, the REPs can encourage the reduction of carbon emissions through improving green technology innovation and lowering the marginal abatement cost. Furthermore, the REPs have a stronger effect on reducing carbon emissions in regions with better economic development conditions or old industrial bases. Therefore, implementation of REPs is a successful way to lower carbon emissions.

Suggested Citation

  • Yang, Rui & Xu, Hang, 2026. "The impact of renewable energy policies on carbon emissions: Empirical evidence from China," Renewable Energy, Elsevier, vol. 260(C).
    • Handle: RePEc:eee:renene:v:260:y:2026:i:c:s0960148126000649
    DOI: 10.1016/j.renene.2026.125239
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