Abstract
Sustainability is a strategic choice for the transition to a green economy in China. Improving green total factor energy efficiency (GTFEE) is the key to realizing the dual targets of energy-saving and economic growth. This paper empirically tests the nonlinear effects of environmental regulation on technical innovation affecting GTFEE by using panel data of 271 prefecture-level cities in China from 2004 to 2019. Meanwhile, a system GMM approach is used to verify the channels through which technical innovation affects GTFEE. Finally, the spatial and temporal characteristics of technical innovation affecting GTFEE are analyzed from the perspective of environmental regulation. The empirical results are as follows: (1) Technical innovation can significantly improve GTFEE. However, this improvement effect is a threshold characteristic; when environmental regulation is above the threshold value, technical innovation has a greater improvement effect on GTFEE. (2) Besides directly influencing GTFEE, technical innovation can also indirectly influence GTFEE via channels such as economic growth effect, industrial structure upgrading effect, and foreign investment effect. Meanwhile, indirect influence channels also show environmental regulation heterogeneity. (3) The number of cities crossing the threshold of environmental regulation in China increases year by year, which helps technical innovation play a role in improving GTFEE. However, there are still a small number of cities that do not cross the threshold during the sample period, which should attract the attention of local governments.
Highlights
China's economy saw a continuous rise in the past few decades, but the traditional extensive development model has taken a huge toll on us (Wang et al, 2020; Gao et al.,2020)
Since environmental issues have been a vital dilemma limiting the transition to a low-carbon economy in China, we focus on green total factor energy efficiency (GTFEE), and incorporate environmental regulation (ER) and technological innovation (TI) into a unified research framework
Studies have shown that technical innovations covering pollution control, ecological processes, and recycling are significant in promoting sustainable economic development (Ernest et al, 1994), and that pursuing TI is an effective means of breaking through current resource and environmental problems and promoting green economic development under the new normal
Summary
China's economy saw a continuous rise in the past few decades, but the traditional extensive development model has taken a huge toll on us (Wang et al, 2020; Gao et al.,2020). Under the dual pressure of economic growth and energy conservation and emission reduction, enhancing energy efficiency (EE) is a must for China to realize sustainability (Sun et al, 2019). Since environmental issues have been a vital dilemma limiting the transition to a low-carbon economy in China , we focus on green total factor energy efficiency (GTFEE), and incorporate environmental regulation (ER) and technological innovation (TI) into a unified research framework. TI could decrease energy consumption and pollutant emissions per unit of output, which is helpful to sustainable economy and environmental protection A study of these questions are helpful to learn the current effect of TI on energy efficiency and its underlying mechanisms, so that TI can play a vital role in green development. The following study is structured as follows: Section II is a review of the relevant literature; Section III briefly provides the background and research hypothesis of energy saving and emission reducing in China; Section IV introduces the research design, constructing models and providing data description; Part V is the results of the empirical analysis; and Part VI concludes
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