How does science and technology innovation improve carbon productivity?-Evidence at China's province level.

Abstract

Science and technological innovation play a crucial role in achieving the goals of carbon peaking and carbon neutrality. They are also vital for improving the scale, structure, and allocation of input and output factors, as well as enhancing the marginal efficiency of production factors. This study investigates the impact of science and technological innovation on carbon productivity using data from 30 provinces (cities, and autonomous regions) in China spanning the period from 2004 to 2020. The findings are as follows: First, the spatial characteristics of carbon productivity in China have gradually evolved into "low in the northern regions and high in the southern regions." The spatial distribution of science and technological innovation in China shows a gradual decrease from the southeast to the northwest. Second, employing the fixed effect model, we find that science and technological innovation has a significant positive effect on carbon productivity, with regional variations in the magnitude of the effect. Furthermore, we identify industrial structure rationalization, industrial structure advancement, and industrial structure ecology as important mechanisms through which science and technological innovation influence carbon productivity. The mediation effects are measured at 3.37%, 8%, and 73.94%, respectively. These research findings provide valuable insights for enhancing technological innovation capabilities, realizing low-carbon development, and addressing the challenges posed by climate change.