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Renewable energy technology innovation, climate risk, and carbon emission reduction: A cross-country analysis

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  • Zhang, Xinmin
  • Wang, Miao
  • Zang, Hong

Abstract

Understanding the relationship between renewable energy technology innovation (RETI), climate risk, and carbon emissions is crucial for promoting global low-carbon transition. Based on panel data from 54 countries during 2000–2021, this study employs fixed effects models, PVAR models, and threshold regression models for analysis. The results show that: (1) RETI has an inhibitory effect on carbon emissions, while climate risk exhibits an inverted U-shaped relationship with carbon emissions; (2) climate risk shocks inhibit RETI in the short term, while RETI has no significant impact on climate risk; (3) Moderated by climate risk, RETI demonstrates a double-threshold effect on carbon emissions: below the first threshold, RETI significantly reduces carbon emissions; between the two thresholds, RETI increases emissions; above the second threshold, RETI restores its emission reduction effect; (4) RETI demonstrates more significant emission reduction effects in developed and high-income countries. Through systematic analysis, this study reveals the interactive mechanisms among RETI, climate risk, and carbon emissions, providing important implications for formulating differentiated technological innovation policies.

Suggested Citation

  • Zhang, Xinmin & Wang, Miao & Zang, Hong, 2025. "Renewable energy technology innovation, climate risk, and carbon emission reduction: A cross-country analysis," Renewable Energy, Elsevier, vol. 240(C).
    • Handle: RePEc:eee:renene:v:240:y:2025:i:c:s0960148124022043
    DOI: 10.1016/j.renene.2024.122136
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