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Does innovation save more energy? Evidence from Chinese Firms

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  • Gao, Jingyi
  • Ren, Yuanming

Abstract

How to improve energy efficiency is vital under the dual carbon target, and has been one of the central topics for economists and policymakers. Relying on the novel merged data at the firm level in China, we investigate the role of innovation activities on firms’ energy usage. The results show that innovation indeed promotes energy efficiency, and further, the patent with higher quality shows larger promotion effect. In addition, this paper provides heterogeneity tests, and find that the promotion effect of patent on energy efficiency is only valid for state-owned, private, and foreign firms. Meanwhile, the marginal effect is highest in western area but lowest in the eastern area. Then, we examine the mechanism of the energy-saving effect, and that effect is more pronounced in high-tech and high-pollution industries. The policy implication is obvious that the speed up of innovation-led growth can benefit the energy efficiency improvement.

Suggested Citation

  • Gao, Jingyi & Ren, Yuanming, 2023. "Does innovation save more energy? Evidence from Chinese Firms," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 638-646.
    • Handle: RePEc:eee:reveco:v:85:y:2023:i:c:p:638-646
    DOI: 10.1016/j.iref.2022.11.018
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    Cited by:

    1. Lei Wang & Xuan Jiang & Tingqiang Chen & Ruirui Zhu, 2024. "The Contagion of Debt Default Risk in Energy Enterprises Considering Carbon Price Fluctuations," Mathematics, MDPI, vol. 12(17), pages 1-27, September.

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    More about this item

    Keywords

    Innovation; Energy efficiency; Patent type; Heterogeneity;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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