Climate risk and energy-saving technology innovation: Evidence from Chinese prefecture-level cities

Abstract

In the face of the challenges of energy and environmental issues posed by climate risk, actively promoting energy-saving technology innovation is crucial in addressing climate risk. This study focuses on the electricity elements as the research object, and examines the impact of climate risk on energy-saving technology innovation by constructing a Spatial Durbin Model, using 2007–2021 data on temperature and electricity-saving technology patents at the prefecture-level cities in China. The findings reveal that climate risk promotes energy-saving technology innovation. Furthermore, it is discovered that climate risk exhibits significant positive spillover effects on energy-saving technology innovation through the decomposition of spatial effects, implying that the climate risk in neighboring areas has a notable positive influence on local energy-saving technology innovation. Mechanism tests indicate that climate risk directly promotes regional energy-saving technology innovation through increasing energy consumption, research and development (R&D) investment, and strengthening government environmental regulation. Particularly under the influence of climate risk, the increase in energy consumption and R&D investment more effectively drives regional energy-saving technology innovation. Moreover, variances in cities' geographical locations, carbon emission levels, electricity price levels, and electricity resource endowments result in substantial discrepancies in the effect of climate risk on energy-saving technology innovation. Based on these findings, Governments could incorporate climate risk into synergistic regional planning and enhance energy-saving technology innovation to address climate risk.