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Decreasing China's carbon intensity through research and development activities.

Junbing Huang1, Li Wang1, Dexing Wang1

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Domestic research and development (R&D) effectively reduces carbon intensity in China. Different R&D stages and actors yield varied impacts, with technology absorptive capacity playing a key role.

Keywords:
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Area of Science:

  • Environmental Economics
  • Innovation Studies
  • Regional Development

Background:

  • Nations utilize research and development (R&D) to enhance environmental performance.
  • Existing studies lack granularity on R&D's impact on carbon intensity across actors and stages.
  • Regional technology absorptive capacity's role in R&D's environmental impact is under-examined.

Purpose of the Study:

  • To investigate the nuanced impacts of domestic R&D on carbon intensity in China.
  • To differentiate R&D effects by classifying activities into three stages and three actors.
  • To explore the moderating role of technology absorptive capacity on the R&D-carbon intensity relationship.

Main Methods:

  • Analysis of a Chinese provincial panel dataset spanning 2000-2016.
  • Classification of R&D into distinct stages and actors for granular impact assessment.
  • Application of a panel threshold model to examine the nonlinear relationship between R&D and carbon intensity.

Main Results:

  • Domestic R&D significantly improves carbon intensity.
  • R&D impacts vary statistically across different stages and actors.
  • A nonlinear nexus exists between carbon intensity and domestic R&D.
  • Technology absorptive capacity (measured by R&D personnel) moderates this relationship.

Conclusions:

  • Domestic R&D is a vital tool for reducing carbon intensity in China.
  • Targeting specific R&D stages and actors can optimize environmental benefits.
  • Enhancing technology absorptive capacity is crucial for maximizing R&D's positive environmental effects.
  • Policy interventions should consider the nonlinearities and moderating factors in R&D-driven carbon reduction strategies.