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On innovation infrastructure and industrial carbon emissions: Nonlinear correlation and effect mechanism

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  • Liu, Xinyu
  • Song, Min
  • Wang, Shuying
  • Xu, Xingwu
  • Li, Haolin

Abstract

Innovation infrastructure (INN) compatible with industrial carbon emissions (ICE) reduction is crucial for peaking carbon emissions in the industrial sector. However, INN in China requires urgent strengthening. We elucidate the inverted U-shaped correlation between INN and ICE based on an expanded endogenous growth model, then empirically verify the nonlinear correlation between the two and its effect mechanism using data from 30 provinces in China from 2012 to 2022. The findings present that the correlation between INN and ICE exhibits an inverted U-shaped characteristic. The inverted U-shaped effect of INN on ICE mainly comes from major science and technology infrastructure, as well as science and education infrastructure. Virtual agglomeration, technology progress, energy structure optimization and industrial structure adjustment are vital mechanisms by which INN reduces ICE. However, the ambiguity surrounding data rights and the prevalence of digital platform monopolies impede the potential of virtual agglomeration to diminish ICE. Furthermore, there is also an inverted U-shaped correlation between INN and ICE in geographically adjacent areas.

Suggested Citation

  • Liu, Xinyu & Song, Min & Wang, Shuying & Xu, Xingwu & Li, Haolin, 2024. "On innovation infrastructure and industrial carbon emissions: Nonlinear correlation and effect mechanism," Applied Energy, Elsevier, vol. 375(C).
    • Handle: RePEc:eee:appene:v:375:y:2024:i:c:s0306261924014624
    DOI: 10.1016/j.apenergy.2024.124079
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