Carbon emission reduction effects of intellectual property institution construction in China

Institutions are the fundamental determinants of carbon emission performance. However, the environmental impact of intellectual property institution, especially its impact on carbon emissions, has been paid little attention. Therefore, the main purpose of this study is to assess the effect of intellectual property institution on carbon emission reduction, revealing a new solution to control carbon emissions. To achieve the goal, this study regards the National Intellectual Property Demonstration City (NIPDC) policy in China as a quasi-natural experiment of intellectual property institution construction and exploits the difference in difference approach to objectively evaluate the impact of intellectual property institution on carbon emission reduction based on the panel data of China's cities. The study draws the following important conclusions. First, compared with non-pilot cities, the NIPDC policy has reduced urban carbon emissions by 8.64% in pilot cities. In particular, the "carbon emission reduction dividend" of the NIPDC policy is in the long term but not in the short term. Second, the influence mechanism analysis shows that the NIPDC policy can promote carbon emission reduction by stimulating technology innovation, especially breakthrough innovation. Third, the space overflow analysis reveals that the NIPDC policy can mitigate carbon emissions in adjacent areas, resulting in obvious spatial radiation effect. Fourth, the heterogeneity analysis confirms that the carbon emission reduction effect of the NIPDC policy is more obvious in low administrative hierarchic cities, small and medium-sized cities, and western cities. As a result, Chinese policymakers should orderly promote the construction of NIPDCs, strengthen technology innovation, give full play to the spatial radiation role of NIPDCs, and optimize the role of government, so as to better release the carbon emission abatement effect of intellectual property institution.