How do different types of energy technological progress affect regional carbon intensity? A spatial panel approach.

Abstract

This paper investigated the spatial effects of two types of technological progress, namely renewable energy technology patents (RET patents) and energy conservation and emission reduction technology patents (ECERT patents), on carbon intensity of 30 provinces in China. Based on the 2005-2017 provincial panel dataset of China, this paper used the spatial Durbin model to analyze the spatial dependence and the spillover effects of surrounding provinces. The results first proved the existence of the spatial correlation in the carbon intensity across different provinces in China. Second, we found that the energy conservation and emission reduction technological progress can effectively reduce the province's own carbon intensity; however, this role is not significantly reflected by the progress in renewable energy technologies. Nonetheless, both types of technological progress have negative indirect and total effects on carbon intensity, thereby indicating that, geographically, they have technology diffusion effects. At the same time, the results demonstrated that technology patents play a negative role in carbon intensity. Third, by taking the interaction item between energy consumption and renewable energy technology patents into consideration, it was observed that the progress in renewable energy technologies can reduce the carbon intensity, owing to its role in optimizing the energy consumption structure of the province, but increase the carbon intensity of the surrounding provinces. Finally, based on the abovementioned findings, this paper put forward corresponding policy proposals.