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Green innovation and China’s CO2 emissions – the moderating effect of institutional quality

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  • Baolong Yuan
  • Chen Li
  • Hongyuan Yin
  • Meng Zeng

Abstract

China’s economy is faced with mounting pressure to reduce CO2 emissions. This study estimates the impact of green innovation and institutional quality on CO2 emissions, and examines the moderating effect of institutional quality. The results show that: (1) Green innovation significantly reduced CO2 emissions. Institutional quality has a negative moderating effect on the relationship between green innovation and CO2 emissions, such that when institutional quality is high, green innovation has a stronger reduction in CO2 emissions. (2) Green innovation significantly reduced CO2 emissions in the eastern and western regions. Moreover, as institutional quality improves, the reduction of CO2 emissions through green innovation increased in the western region. (3) Green innovation in 2013–2017 had a greater effect on CO2 emissions reduction than 2005–2012. Moreover, with the improvement of institutional quality, green innovation’s reduction of CO2 emissions in 2005–2012 was weakened, whereas the reduction of CO2 emissions by green innovation increased in 2013–2017.

Suggested Citation

  • Baolong Yuan & Chen Li & Hongyuan Yin & Meng Zeng, 2022. "Green innovation and China’s CO2 emissions – the moderating effect of institutional quality," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 65(5), pages 877-906, April.
    • Handle: RePEc:taf:jenpmg:v:65:y:2022:i:5:p:877-906
    DOI: 10.1080/09640568.2021.1915260
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    Cited by:

    1. Hui Fang & Xiaoye Zhang & Ting Lei & Baya Lydia Houadi, 2023. "FDI Quality, Green Technology Innovation and Urban Carbon Emissions: Empirical Evidence from China," Sustainability, MDPI, vol. 15(12), pages 1-25, June.
    2. Zhang, Hui & Fahlevi, Mochammad & Aljuaid, Mohammed & Beşer, Nazife Özge & Cabas, Meral & lominchar, Jose, 2024. "A machine learning and quantile analysis of FINTECH and resource efficiency in achieving sustainable development in OECD countries," Resources Policy, Elsevier, vol. 92(C).
    3. Lin, Shu & Razzaq, Asif & Yi, Kefu, 2023. "Heterogenous influence of productive capacities pillars and natural resources on ecological sustainability in developing Belt and Road host countries," Resources Policy, Elsevier, vol. 85(PA).
    4. Du, Yanan & Zhou, Jianping & Bai, Jiancheng & Cao, Yujia, 2023. "Breaking the resource curse: The perspective of improving carbon emission efficiency based on digital infrastructure construction," Resources Policy, Elsevier, vol. 85(PB).
    5. Xie, Peijun & Jamaani, Fouad, 2022. "Does green innovation, energy productivity and environmental taxes limit carbon emissions in developed economies: Implications for sustainable development," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 66-78.
    6. Lee, Chien-Chiang & Zhao, Ya-Nan, 2023. "Heterogeneity analysis of factors influencing CO2 emissions: The role of human capital, urbanization, and FDI," Renewable and Sustainable Energy Reviews, Elsevier, vol. 185(C).
    7. Lee, Chien-Chiang & Wang, En-Ze & Tang, Huimin, 2024. "Green fiscal policy and carbon emission: Enterprises’ level evidence from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 203(C).
    8. Safi, Adnan & Wei, Xin & Sansaloni, Eduard Montesinos & Umar, Muhammad, 2023. "Breaking down the complexity of sustainable development: A focus on resources, economic complexity, and innovation," Resources Policy, Elsevier, vol. 83(C).
    9. Bai, Ling & Guo, Tianran & Xu, Wei & Liu, Yaobin & Kuang, Ming & Jiang, Lei, 2023. "Effects of digital economy on carbon emission intensity in Chinese cities: A life-cycle theory and the application of non-linear spatial panel smooth transition threshold model," Energy Policy, Elsevier, vol. 183(C).

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