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Pathway to develop a low-carbon economy through energy-substitution technology in China

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  • Wang, Yajun
  • Huang, Junbing

Abstract

As China is determined to develop a low-carbon economy, this study develops a carbon index as a proxy for a low-carbon economy and employs energy-substitution patents as an important technical factor to influence the low-carbon economy. The impact of heterogeneous energy-substitution technology on the low-carbon economy in China is also investigated. The conventional analysis methods, including the generalised method of moments, propensity score matching and difference-in-differences estimator, are employed. The heterogeneity and influencing mechanism of technology are also considered. Using the 2000–2016 data collected from 30 provinces in mainland China, we confirm that energy-substitution technology effectively promotes a low-carbon economy and that this kind of technology coming from enterprises also provides a better low-carbon economy than those from research institutions, university and individuals. We also find that utility-oriented technology effectively promotes a low-carbon economy than invention-oriented ones. However, invention-oriented technology does raise the degree of the low-carbon economy when it serves to complement utility-oriented technology. The influencing mechanism analysis following a two-step method clearly shows that energy-substitution technology promotes the degrees of low-carbon economy by increasing the use of clean energy.

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  • Wang, Yajun & Huang, Junbing, 2022. "Pathway to develop a low-carbon economy through energy-substitution technology in China," Energy, Elsevier, vol. 261(PA).
    • Handle: RePEc:eee:energy:v:261:y:2022:i:pa:s0360544222018631
    DOI: 10.1016/j.energy.2022.124964
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