Abstract
The role of innovation for economic growth has been proved by studies. However, whether innovation can decrease environmental cost and energy security risks remains to be studied. To explore the theoretical mechanism of driving green economic growth by innovation, we constructed a four-sector endogenous growth model, including the final-goods sector, the intermediate-goods sector, the Research and Development (R&D) sector, and the energy sector. Then we measured the innovation-driven effect of green growth and calculated the green added value of 40 industries in China during 2005–2016. Based on the calculations, we used a threshold regression model to test the mechanism of driving green growth and decreasing energy security risks by innovation. The results showed that: (1) the innovation-driven effect on green growth increased from 0.2729 in 2005 to 0.3446 in 2016. (2) The proportion of green added value in the traditionally added value increased from 79.54% in 2005 to 92.25% in 2016. (3) Innovation had a threshold effect on green growth: the role of innovation in driving green growth weakened in the long term, but not in the short term (4) Innovation also had a threshold effect on energy security risk: after the innovation-driven effect crossed the threshold, innovation decreased energy security risk more significantly.
Highlights
Energy is a material basis for human survival and development
The remainder of this paper is arranged as follows: In Section 2, we constructed the endogenous growth model and measured the innovation-driven effect based on the industrial perspective; in Section 3, we estimated the green added values of each industry based on the System of Environmental-Economic Accounting (SEEA); in Section 4, based on the measurement, we examined the mechanism of driving green growth and decreasing energy security risks by innovation
We proposed that the driving effect of innovation on green growth was weakened because the positive impact of innovation on economic growth was offset by the increasing environmental costs, which may not be rigorous
Summary
Energy is a material basis for human survival and development. while promoting the progress of human civilization, the overuse of energy makes the countries confronted with a severe situation of resource exhaustion and environmental pollution, which restricts their sustainable development. Using a threshold regression model, we studied the mechanism of driving green economic growth and decreasing energy security risks by innovation. To explore the theoretical mechanism of driving green growth by innovation, we introduced energy consumption and environmental quality into the production function and constructed a four-sector endogenous growth model including the final-goods sector, the intermediate-goods sector, the Research and Development (R&D) sector, and the energy sector. The remainder of this paper is arranged as follows: In Section 2, we constructed the endogenous growth model and measured the innovation-driven effect based on the industrial perspective; in Section 3, we estimated the green added values of each industry based on the SEEA; in Section 4, based on the measurement, we examined the mechanism of driving green growth and decreasing energy security risks by innovation.
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