Energy-saving R&D and carbon intensity in China

China's domestic research and development (R&D), an important source of technological progress, is considered one of its most effective implements for cutting carbon intensity. However, few studies have yet focused on R&D in the energy field, or even explored the heterogeneity within energy-saving R&D. Considering its potential significance in yielding more effective environmental policies, this work focuses particularly on energy-saving R&D, which is representative of energy-saving technological progress, and categorizes these R&D activities according to actors and purposes to identify their heterogeneity. A series of estimators, including instrumental variable estimators, a propensity score matching and difference-in-differences estimator, and the generalized method of moments, are applied first. To obtain more detail on how energy-saving R&D influences carbon intensity, a two-step analysis and dynamic panel threshold model are then employed. Since enterprises' motivation for technological change arises from a profit-maximizing purpose, we hypothesize that the activities of enterprises, as opposed to universities or individuals, could produce more noticeable impacts on carbon intensity reduction. We further hypothesize that utility-type R&D activities are, in practice, more useful in cutting carbon intensity than invention-type R&D and that the technology absorptive capacity plays an important role in the effectiveness of energy-saving R&D activities on carbon intensity. Empirical results based on a Chinese provincial dataset (2000-2016) validate all our hypotheses, which enables us to provide policy suggestions for carbon intensity reduction in China. (c) 2021 Elsevier B.V. All rights reserved.

Automated summary

This study focuses on energy-saving R&D in China, categorizing activities by participants and purposes to identify their heterogeneity. Findings suggest that enterprises have a more noticeable impact on reducing carbon intensity, utility-type R&D activities are more effective in cutting carbon intensity than invention-type R&D, and technology absorptive capacity plays a crucial role in the effectiveness of energy-saving R&D activities on carbon intensity.