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Assessing the Impact Mechanism of Renewable Energy Technology Innovation on Industrial Green Transformation in China

Author

Listed:
  • Xiaodong Yang

    (Shihezi University
    Xinjiang University)

  • Hayat Khan

    (Guangdong University of Foreign Studies)

  • Itbar Khan

    (School of Economics Shenzhen University)

  • Asif Razzaq

    (ILMA University
    Senior Research Fellow, Research Division, CAREC Institute)

Abstract

Due to the worsening issues related to resources and the environment, industrial green transformation (IGT) has emerged as an unavoidable solution in the present stage. Likewise, renewable energy technology innovation (RETI) is indispensable in driving the industrial development path towards green transformation. Initially, this study measures the current status of RETI and IGT and then applies fixed effects models and dynamic panel threshold models to analyze the underlying mechanism between RETI and IGT utilizing China’s regional data from 2006 to 2019. The results support a significant positive association between RETI and IGT. It also shows that China’s IGT is low with significant rough development characteristics, while RETI yields progressive trends. Besides, RETI significantly contributes to IGT in eastern and central areas of China, while western areas of China produce insignificant effects. Manifestly, RETI possesses a nonlinear effect on IGT, which implies that the positive effect of RETI on IGT gradually strengthens when R&D investment intensity and industrial development level crosses a specific threshold value. Similar results are endorsed using alternative instruments, proxies, and estimators, offering reliable outcomes and recommendations.

Suggested Citation

  • Xiaodong Yang & Hayat Khan & Itbar Khan & Asif Razzaq, 2025. "Assessing the Impact Mechanism of Renewable Energy Technology Innovation on Industrial Green Transformation in China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 13098-13120, September.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:3:d:10.1007_s13132-024-02332-x
    DOI: 10.1007/s13132-024-02332-x
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