Green technology diversification, technology vertical spillovers, and energy intensity in Chinese cities

Abstract

Drawing from patent data spanning 2011-2016 in 249 Chinese prefecture-level cities and urban scale multi-region input-output (MRIO) table data, this paper empirically demonstrates that as green technological diversification levels escalate, the energy intensity of Chinese prefecture-level cities exhibits an initial increase followed by a decline. Green technological diversification indirectly influences urban energy intensity through vertical spillovers of green technology across the upstream and downstream sectors within the supply chain. Medium-sized cities, service industry-oriented cities, and those in the early stages of industrialization need to prioritize development of multiple green technologies to surpass the diversification turning point. The finding suggests a strategic transition for Chinese cities from a single green technology agglomeration model to a cluster model of collaborative development of multiple green technologies.