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How does income and green technology innovation influence the emissions reduction effect of renewable energy:
Pei-Hua Zhu1, Kun Zhang2,3
1College of Economics and Management, Beijing University of Technology, Beijing, 100124, China.
Abstract:
The development of renewable energy is a key measure to achieving carbon neutrality in China. Considering the significant regional differences in income levels and green technology innovation, it is essential to discuss the impact of renewable energy development on carbon emissions from the Chinese provincial level. Based on the panel data of 30 provinces in China from 1999 to 2019, this study first explores the impact of renewable energy on carbon emissions and regional heterogeneity. Moreover, the moderating effects of income levels on the nexus between renewable energy and carbon emissions, and the impact mechanism of green technology innovation are further examined. Results show that, first, renewable energy development can significantly reduce carbon emissions in China, and there exist obvious regional differences. Second, income levels present a non-linear moderating effect on the relationship between renewable energy and carbon emissions. The increase in income levels can effectively enhance the emission reduction effect of renewable energy only in high-income regions. Third, renewable energy development is an important mediating mechanism for green technology innovation to achieve emission reduction. Finally, policy implications are proposed to help China in advancing the development of renewable energy and achieve carbon neutrality.
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