IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v70y2024ipbs0275531924001995.html
   My bibliography  Save this article

Dual carbon goals and renewable energy innovations

Author

Listed:
  • Cheng, Xuanmei
  • Ye, Kaite
  • Min Du, Anna
  • Bao, Zhenzhen
  • Chlomou, Grigoria

Abstract

We examine the impact of renewable energy technology innovation on carbon emissions within the framework of China's ‘dual carbon’ goal, focusing on the role of local (provincial) government innovation competitions and economic competition. Analyzing data across 30 provinces from 2010 to 2019, we investigate the correlation between renewable energy advancements and emission reductions and how local government competition modulates this relationship. Our findings suggest that renewable energy innovations have a significant negative impact on carbon emissions. The study reveals that innovation competition among local governments positively affects emission reductions, while economic competition has a negative impact. These results contribute to understanding how regulatory competition among local governments can support or impede the achievement of dual carbon objectives, emphasizing the need for a competitive yet collaborative regulatory environment to enhance the benefits of renewable energy innovations.

Suggested Citation

  • Cheng, Xuanmei & Ye, Kaite & Min Du, Anna & Bao, Zhenzhen & Chlomou, Grigoria, 2024. "Dual carbon goals and renewable energy innovations," Research in International Business and Finance, Elsevier, vol. 70(PB).
    • Handle: RePEc:eee:riibaf:v:70:y:2024:i:pb:s0275531924001995
    DOI: 10.1016/j.ribaf.2024.102406
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531924001995
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102406?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Du, Qunyang & Li, Zhongyuan & Du, Min & Yang, Tianle, 2024. "Government venture capital and innovation performance in alternative energy production: The moderating role of environmental regulation and capital market activity," Energy Economics, Elsevier, vol. 129(C).
    2. Li, Ge & Wen, Huwei, 2023. "The low-carbon effect of pursuing the honor of civilization? A quasi-experiment in Chinese cities," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 343-357.
    3. Claassen, Rutger, 2016. "Externalities as a basis for regulation: a philosophical view," Journal of Institutional Economics, Cambridge University Press, vol. 12(3), pages 541-563, September.
    4. Eichner, Thomas & Pethig, Ru¨diger, 2013. "Flattening the carbon extraction path in unilateral cost-effective action," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 185-201.
    5. Zheng, Huanyu & Song, Malin & Shen, Zhiyang, 2021. "The evolution of renewable energy and its impact on carbon reduction in China," Energy, Elsevier, vol. 237(C).
    6. Goodell, John W. & Nammouri, Hela & Saâdaoui, Foued & Ben Jabeur, Sami, 2023. "Carbon allowances amid climate change concerns: Fresh insights from wavelet multiscale analysis," Finance Research Letters, Elsevier, vol. 55(PA).
    7. Liang, Ting & Zhang, Yue-Jun & Qiang, Wei, 2022. "Does technological innovation benefit energy firms’ environmental performance? The moderating effect of government subsidies and media coverage," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    8. Cheng, Xuanmei & Yan, Chengnuo & Ye, Kaite & Chen, Kanxiang, 2024. "Enhancing resource efficiency through the utilization of the green bond market: An empirical analysis of Asian economies," Resources Policy, Elsevier, vol. 89(C).
    9. 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).
    10. Habiba, Umme & Xinbang, Cao & Anwar, Ahsan, 2022. "Do green technology innovations, financial development, and renewable energy use help to curb carbon emissions?," Renewable Energy, Elsevier, vol. 193(C), pages 1082-1093.
    11. Zhao, Congyu & Wang, Jianda & Dong, Kangyin & Wang, Kun, 2023. "How does renewable energy encourage carbon unlocking? A global case for decarbonization," Resources Policy, Elsevier, vol. 83(C).
    12. Hunjra, Ahmed Imran & Zhao, Shikuan & Goodell, John W. & Liu, Xiaoqian, 2024. "Digital economy policy and corporate low-carbon innovation: Evidence from a quasi-natural experiment in China," Finance Research Letters, Elsevier, vol. 60(C).
    13. Gao, Yuchen & Hu, Yimei & Liu, Xielin & Zhang, Huanren, 2021. "Can public R&D subsidy facilitate firms’ exploratory innovation? The heterogeneous effects between central and local subsidy programs," Research Policy, Elsevier, vol. 50(4).
    14. Yang, Tianle & Li, Fangmin & Du, Min & Huang, Miao & Li, Yinuo, 2023. "Impacts of alternative energy production innovation on reducing CO2 emissions: Evidence from China," Energy, Elsevier, vol. 268(C).
    15. Goodell, John W. & Yadav, Miklesh Prasad & Ruan, Junhu & Abedin, Mohammad Zoynul & Malhotra, Nidhi, 2023. "Traditional assets, digital assets and renewable energy: Investigating connectedness during COVID-19 and the Russia-Ukraine war," Finance Research Letters, Elsevier, vol. 58(PA).
    16. Zhao, Ge & Zhou, P. & Wen, Wen, 2022. "What cause regional inequality of technology innovation in renewable energy? Evidence from China," Applied Energy, Elsevier, vol. 310(C).
    17. Fredriksson, Per G. & Millimet, Daniel L., 2002. "Strategic Interaction and the Determination of Environmental Policy across U.S. States," Journal of Urban Economics, Elsevier, vol. 51(1), pages 101-122, January.
    18. David Popp, 2002. "Induced Innovation and Energy Prices," American Economic Review, American Economic Association, vol. 92(1), pages 160-180, March.
    19. Cheng, Xuanmei & Chen, Kanxiang & Su, Yuxin, 2023. "Green innovation in oil and gas exploration and production for meeting the sustainability goals," Resources Policy, Elsevier, vol. 87(PA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sun, Zhennan & Du, Qunyang & Du, Anna Min & Li, Zhongyuan & Yang, Tianle, 2024. "The information environment and ecological environment perspectives: Capital market openness and firm ESG rating divergence," Research in International Business and Finance, Elsevier, vol. 71(C).
    2. Kozera, Agnieszka & Satoła, Łukasz & Standar, Aldona, 2024. "European Union co-funded investments in low-emission and green energy in urban public transport in Poland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 200(C).
    3. El Khoury, Rim & Min Du, Anna & Nasrallah, Nohade & Marashdeh, Hazem & Atayah, Osama F., 2025. "Towards sustainability: Examining financial, economic, and societal determinants of environmental degradation," Research in International Business and Finance, Elsevier, vol. 73(PA).
    4. Chishti, Muhammad Zubair & Salam, Muhammad & Xaisongkham, Sorphasith & Du, Anna Min, 2025. "Influence of green ICT and socioeconomic factors on sustainable development: Evidence from Chinese provinces," Research in International Business and Finance, Elsevier, vol. 73(PA).
    5. Shazia Kousar & Amber Pervaiz & Farhan Ahmed & Florian Marcel Nuţă, 2024. "Do Structural Transformations in the Energy Sector Help to Achieve Decarbonization? Evidence from the World’s Top Five Green Leaders," Energies, MDPI, vol. 17(18), pages 1-28, September.
    6. Chandio, Abbas Ali & Akram, Waqar & Min Du, Anna & Ahmad, Fayyaz & Tang, Xiaoping, 2025. "Agricultural transformation: Exploring the impact of digitalization, technological innovation and climate change on food production," Research in International Business and Finance, Elsevier, vol. 75(C).
    7. Min Du, Anna & Lu, Mengyuan & Zhang, Yiyan & Li, Zhongyuan, 2025. "Confucian culture and corporate environmental management: The role of innovation, financing constraints and managerial myopia," Research in International Business and Finance, Elsevier, vol. 73(PA).
    8. Wang, Siquan & Du, Anna Min & Lin, Boqiang, 2025. "Micro-mechanisms of digitalization-driven financing for renewable energy: Growing capital pools and shifting flows," Research in International Business and Finance, Elsevier, vol. 73(PA).
    9. Wang, Siquan & Du, Anna Min & Lin, Boqiang, 2025. "Market mechanisms for energy transition: Fossil energy price shocks and irrational renewable energy financing," Journal of International Money and Finance, Elsevier, vol. 151(C).
    10. Zhu, Xiaoyu (Ross) & Zhou, Changyun & Zeng, Hanzhe, 2025. "Can inclusive finance curb sustainability regulatory risk for corporations?," Research in International Business and Finance, Elsevier, vol. 77(PA).
    11. Tiwari, Sunil & Sharif, Arshian & Sofuoğlu, Emrah & Nuta, Florian, 2025. "A step toward the attainment of carbon neutrality and SDG-13: Role of financial depth and green technology innovation," Research in International Business and Finance, Elsevier, vol. 73(PA).
    12. Benkraiem, Ramzi & Berrich, Olfa & Lakhal, Nadia & Nizar, Hamza & Lakhal, Faten, 2025. "Balancing ecology and finance: The impact of carbon performance on dividend payout policy," Research in International Business and Finance, Elsevier, vol. 74(C).
    13. Li, Minyang & Du, Anna Min & Wang, Siquan & Lin, Boqiang, 2025. "Better financing: Signal match between growth in the digital economy and renewable energy business," Research in International Business and Finance, Elsevier, vol. 77(PA).
    14. Sun, Zhennan & Du, Qunyang, 2025. "Environmental regulation and firm R&D manipulation behaviour: Evidence from the low-carbon city pilot program in China," International Review of Economics & Finance, Elsevier, vol. 98(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Boqiang & Wang, Zhijun, 2024. "Do local government investment preferences influence renewable energy technology innovation? Evidence from China," Renewable Energy, Elsevier, vol. 231(C).
    2. Wang, Shucui & Peng, Ting & Du, Anna Min & Lin, Xiaohui, 2025. "The impact of the digital economy on rural industrial revitalization," Research in International Business and Finance, Elsevier, vol. 76(C).
    3. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Skare, Marinko, 2023. "Asymmetric influence of digital finance, and renewable energy technology innovation on green growth in China," Renewable Energy, Elsevier, vol. 202(C), pages 310-319.
    4. El Khoury, Rim & Min Du, Anna & Nasrallah, Nohade & Marashdeh, Hazem & Atayah, Osama F., 2025. "Towards sustainability: Examining financial, economic, and societal determinants of environmental degradation," Research in International Business and Finance, Elsevier, vol. 73(PA).
    5. Li, Jiachen & Jiang, Meiru & Li, Ge, 2024. "Does the new energy vehicles subsidy policy decrease the carbon emissions of the urban transport industry? Evidence from Chinese cities in Yangtze River Delta," Energy, Elsevier, vol. 298(C).
    6. Dai, Xiajing & Zhang, Junjie, 2024. "China's green development journey through resource rent optimization and green finance policies," Resources Policy, Elsevier, vol. 90(C).
    7. Weng, Shimei & Song, Malin & Tao, Weiliang & Chen, Jianbao & Chen, Hao, 2025. "Breaking the inertia of urban energy systems: Does the new energy demonstration city construction improve carbon unlocking efficiency?," Renewable Energy, Elsevier, vol. 244(C).
    8. Wang, Zhen & Chu, Erming, 2024. "The path toward urban carbon neutrality: How does the low-carbon city pilot policy stimulate low-carbon technology?," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 954-975.
    9. Linjie Tong & Qinghua Qi & Chaoyang Wang & Qian Mu, 2025. "Does Renewable Energy Technology Innovation Enhance Carbon Productivity? Evidence from China," Energies, MDPI, vol. 18(7), pages 1-25, March.
    10. Chishti, Muhammad Zubair & Salam, Muhammad & Xaisongkham, Sorphasith & Du, Anna Min, 2025. "Influence of green ICT and socioeconomic factors on sustainable development: Evidence from Chinese provinces," Research in International Business and Finance, Elsevier, vol. 73(PA).
    11. Wang, Wei & Liu, Dongsheng & Chen, Lifeng & Song, Meizhe & Xu, Jiaqi, 2024. "Assessment of impacts of green technology and innovation on sustainable mineral resource production," Resources Policy, Elsevier, vol. 90(C).
    12. Liu, Donghui & Shang, Zhaoyan & Lin, Tongzhi & Yue, Shuguang, 2024. "Balancing law, sustainability, and the economy in China's responsible mineral resource extraction path," Resources Policy, Elsevier, vol. 90(C).
    13. Chen, KanXiang & Teng, Fangfei & Razzaq, Asif & Li, Chengnan, 2025. "Climate conditions, credit risk cycles, and technological progress: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    14. Sun, Chuanwang & Khan, Anwar & Xue, Juntao & Huang, Xiaoyong, 2024. "Are digital economy and financial structure driving renewable energy technology innovations: A major eight countries perspective," Applied Energy, Elsevier, vol. 362(C).
    15. Ma, Xuewen & Liu, Liyan & Zhang, Dongming, 2024. "How green finance tools and electric vehicles minerals sustainability are related?," Resources Policy, Elsevier, vol. 90(C).
    16. He, Mu & Chen, Sisi, 2024. "Breaking the resource curse for sustainable growth and transforming rural economies," Resources Policy, Elsevier, vol. 90(C).
    17. He, Zuojing & Ge, Fangting & Ban, Shengxi & Min Du, Anna & Sheehan, Maura, 2024. "Fintech's influence on green credit provision: Empirical evidence from China’s listed banking sector," Research in International Business and Finance, Elsevier, vol. 70(PB).
    18. Sun, Tongtong & Nie, Peng & Liu, Xiaoxia & Gu, Weiyu, 2024. "Ways to make mineral resource trade flows sustainable," Resources Policy, Elsevier, vol. 90(C).
    19. Wang, Zhongcheng & Li, Xinyue & Xue, Xinhong & Liu, Yahuan, 2022. "More government subsidies, more green innovation? The evidence from Chinese new energy vehicle enterprises," Renewable Energy, Elsevier, vol. 197(C), pages 11-21.
    20. Zhao, Zhihua & Xing, Zhenjiang, 2024. "Gold mining, corporate business management, and green growth in Asia," Resources Policy, Elsevier, vol. 89(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:70:y:2024:i:pb:s0275531924001995. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.