How does power technology innovation affect carbon productivity? A spatial perspective in China

Abstract

Power technology innovation has been positioned as an effective way to contribute to China’s carbon productivity. However, limited empirical evidence exists on the impact of power technology innovation on carbon productivity. Thus, based on the annual panel dataset of 30 China’s provinces from 2001 to 2019, this study explored whether and how power technology innovation promotes or impedes the improvement of carbon productivity. First, carbon productivity in the framework of total factor was calculated based on the metafrontier Malmquist-Luenberger productivity index. Second, the effect of power technology innovation on carbon productivity was investigated using the spatial Durbin model. And we also examined whether heterogeneous power technology innovations have a synergistic effect on carbon productivity. Third, influence mechanism of power technology innovation affecting carbon productivity was identified. Results show that (1) there are notable differences in China’s provincial carbon productivity, which is characterized by the spatial correlation. (2) Local power technology innovation has a promotion effect on carbon productivity in both local and neighboring provinces. Moreover, the promotion effect of breakthrough power technology innovation is stronger than that of incremental power technology innovation. (3) Catching-up Effect and Innovation Effect are important transmission channels through which power technology innovation improves carbon productivity. Finally, policy recommendations are provided.