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Can CDM projects trigger host countries’ innovation in renewable energy? Evidence of firm-level dataset from China

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  • Cui, Jingbo
  • Liu, Xi
  • Sun, Yongping
  • Yu, Haishan

Abstract

The goal of the Clean Development Mechanism (CDM) is both emission reduction and sustainable development, in this process, whether the host country's own technological innovation can be promoted should be an important part of the post assessment of CDM projects. This paper examines whether the CDM projects accumulated at the province level are positively correlated with Chinese firms’ innovation in technological fields associated with renewable energy and energy efficiency. We assemble a unique firm-level dataset with both firms’ patent innovation in renewable energy and CDM projects accounted for. We obtain some novel findings. CDM projects have contributed to the firm-level innovation in renewable energy and energy efficiency. The heterogeneity is detected. This positive enhancement effect is pronounced in invention patents, but is muted in utility patents. The induced innovation effect varies across industrial energy intensity. The more energy intensive the industry, the larger impacts the firms could absorb from the CDM projects. When inspecting CDM by specific energy type, the type-specific induced innovation effect is only documented for biofuel-related CDM projects, indicating that firm-level innovation in biofuels appears to benefit from the related CDM projects within the same province. Lastly, we do find some regional spillover effects in which the CDM projects accumulated at the province level have positive impacts on renewable energy innovation of the non-CDM firms.

Suggested Citation

  • Cui, Jingbo & Liu, Xi & Sun, Yongping & Yu, Haishan, 2020. "Can CDM projects trigger host countries’ innovation in renewable energy? Evidence of firm-level dataset from China," Energy Policy, Elsevier, vol. 139(C).
    • Handle: RePEc:eee:enepol:v:139:y:2020:i:c:s0301421520301063
    DOI: 10.1016/j.enpol.2020.111349
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    Cited by:

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    2. Bongsuk Sung & Woo-Yong Song, 2021. "Are Political Factors More Relevant Than Economic Factors in Firm-Level Renewable Energy Technology Export? Evidence from Path Analysis," Sustainability, MDPI, vol. 13(16), pages 1-16, August.
    3. Beibei Shi & Lei Wu & Rong Kang, 2021. "Clean Development, Energy Substitution, and Carbon Emissions: Evidence from Clean Development Mechanism (CDM) Project Implementation in China," Sustainability, MDPI, vol. 13(2), pages 1-18, January.
    4. Bortoletto, Wagner Wilson & Pacagnella Junior, Antonio Carlos & Cabello, Otavio Gomes, 2023. "Exploring the scientific literature on clean development mechanisms: A bibliometric analysis," Energy Policy, Elsevier, vol. 183(C).
    5. Ottonelli, Janaina & Lazaro, Lira Luz Benites & Andrade, José Célio Silveira & Abram, Simone, 2023. "Do solar photovoltaic clean development mechanism projects contribute to sustainable development in Latin America? Prospects for the Paris Agreement," Energy Policy, Elsevier, vol. 174(C).
    6. Weko, Silvia & Goldthau, Andreas, 2022. "Bridging the low-carbon technology gap? Assessing energy initiatives for the Global South," Energy Policy, Elsevier, vol. 169(C).
    7. Liu, Menghe & Li, Yuxiao, 2022. "Environmental regulation and green innovation: Evidence from China's carbon emissions trading policy," Finance Research Letters, Elsevier, vol. 48(C).
    8. Tang, Wenzhi & Du, Shaofu & Hu, Li & Wang, Bill & Zhu, Yangguang, 2022. "The effects of leadership in Clean Development Mechanism low-carbon operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    9. Sung, Bongsuk & Soh, Jin Young & Park, Chun Gun, 2022. "Comparing government support, firm heterogeneity, and inter-firm spillovers for productivity enhancement: Evidence from the Korean solar energy technology industry," Energy, Elsevier, vol. 246(C).
    10. Yu, Chin-Hsien & Wu, Xiuqin & Zhang, Dayong & Chen, Shi & Zhao, Jinsong, 2021. "Demand for green finance: Resolving financing constraints on green innovation in China," Energy Policy, Elsevier, vol. 153(C).
    11. Wang, Zhen & Yan, Haoben & Gao, Xue & Liang, Qiaomei & Mi, Zhifu & Liu, Lancui, 2024. "Have consumption-based CO2 emissions in developed countries peaked?," Energy Policy, Elsevier, vol. 184(C).
    12. Weixiang Zhao & Yankun Xu, 2022. "Public Expenditure and Green Total Factor Productivity: Evidence from Chinese Prefecture-Level Cities," IJERPH, MDPI, vol. 19(9), pages 1-27, May.

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    More about this item

    Keywords

    Clean development mechanism; Technology spillovers; Patent; Renewable energy;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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