Does regional innovation system efficiency facilitate energy-related carbon dioxide intensity reduction in China?

Abstract

Technology innovation has been widely considered as a crucial way to reduce energy-related carbon dioxide (CO2) intensity. However, since the previous studies have largely neglected the operational process of innovation activities and the existence of spatial effect in carbon emissions, the impact of technology innovation on mitigation needs to be further investigated. Based on the sample of regional-level dataset in China during the period from 1998 to 2015, we first estimate the regional innovation system efficiency (RISE) with employing Data Envelopment Analysis window technique. Moreover, by adopting spatial econometric approaches, we further examine the direct effect and spatial spillover effect of RISE on CO2 intensity in China during the study period. The results show that there exist remarkable spatial spillover effects of CO2 intensity in China. Interestingly, RISE spatial agglomeration has higher spatial spillover effects on CO2 intensities between two remote areas than between neighbors. More importantly, RISE can facilitate CO2 intensity reduction at national level, whereas in across eastern-western and central-western regions, RISE in one region within a particular area can reduce its CO2 intensity while increasing those of other regions in the other area. Finally, some policy suggestions are identified to reduce CO2 intensity in China.