Carbon emission reduction effect of renewable energy technology innovation: a nonlinear investigation from China's city level.

Abstract

There has always been controversy over how renewable energy technologies can play a role in reducing carbon emissions. Based on the energy patent data and the economic data of 244 prefecture-level cities from 2007 to 2017 in China, we explore the carbon reduction effect of renewable energy technology and its mechanism from the perspective of energy production, conservation, and management. The two-way fixed effect, instrumental variable, spatial Durbin, and mediation effect models are employed to explore empirical results. We found that (1) the impact of renewable energy technologies on carbon emissions is nonlinear, with an inverted U shape. However, this inverted U-shaped relationship only exists locally in cities and there are uncertainties in adjacent cities, which indicates that cross-regional cooperation in renewable energy technology needs to be improved. (2) The mechanism analysis shows that industrial agglomeration and energy consumption scale are the channels that renewable energy technologies affect carbon emissions. Thus, the implicit carbon emissions generated by industrial agglomeration and the failure to green upgrade energy consumption are the main reasons for the inverted U-shaped relationship. (3) The carbon reduction effect of renewable energy technologies of conservation type takes effect first, and renewable energy technologies of production type do not reduce carbon emissions in non-eastern cities, which means that non-eastern cities are likely to become pollution havens. This study provides evidence for renewable energy technologies to achieve efficient carbon emission reduction and cross-regional technical cooperation.