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Unveiling the pathways: How technological innovation shapes green economic efficiency

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  • Zhao, Ke
  • Zhang, Yaming
  • Hamadou, Koura Yaya

Abstract

Technological innovation (TI) is increasingly recognized as a pivotal driver for advancing green, low-carbon and high-quality development. Using data from 30 provinces in China spanning 2005 to 2022, this study empirically examines the impact of TI on green economic efficiency (GEE), and investigates the channels of causality and heterogeneous effect characteristics. The research unveils several pivotal findings: Firstly, TI exerts a positive promoting effect on GEE, validated through rigorous endogeneity and robustness tests. Secondly, TI can boost economic output, strengthen industrial agglomeration effects, promote the transformation of urbanization, thereby enhancing GEE through dual economic and ecological mechanisms. However, the driving and guiding effects of TI on green consumption remain insufficiently obvious. Thirdly, the impact of TI on GEE varies according to policy implementation and regional disparities, along with a more pronounced heterogeneous moderating effect of government regulatory measures on this relationship than economic measures. These findings provide critical policy implications for global stakeholders, helping to harness innovation to achieve sustainable development across diverse economic contexts.

Suggested Citation

  • Zhao, Ke & Zhang, Yaming & Hamadou, Koura Yaya, 2025. "Unveiling the pathways: How technological innovation shapes green economic efficiency," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025007373
    DOI: 10.1016/j.iref.2025.104574
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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