The Impact of Green Innovation on Carbon Emissions: Evidence from the Construction Sector in China

Abstract

Green innovation has been identified as a viable strategy to mitigate the tension between industrial change and pollutant emissions. Relevant research should focus more on the impact of eco-friendly innovations on carbon emissions. Consequently, using a panel data set that covers 30 Chinese provinces from 2005 to 2020, we examine whether there is a carbon-abatement effect of green innovation in the construction sector. According to the findings of a two-way fixed-effects model, green innovation substantially positively influences reduction in dioxide emissions in the Chinese construction industry. The results of a panel threshold model show a significant non-linear relationship between green innovation and carbon emissions when the environmental regulation intensity is used as the threshold variable. Furthermore, we discovered that green innovation cuts carbon emissions considerably through environmental regulation. Finally, the impact of abatement varies significantly between regions, innovation elements, and types of development.