Dual carbon goals and renewable energy innovations

Abstract

We examine the impact of renewable energy technology innovation on carbon emissions within the framework of China's ‘dual carbon’ goal, focusing on the role of local (provincial) government innovation competitions and economic competition. Analyzing data across 30 provinces from 2010 to 2019, we investigate the correlation between renewable energy advancements and emission reductions and how local government competition modulates this relationship. Our findings suggest that renewable energy innovations have a significant negative impact on carbon emissions. The study reveals that innovation competition among local governments positively affects emission reductions, while economic competition has a negative impact. These results contribute to understanding how regulatory competition among local governments can support or impede the achievement of dual carbon objectives, emphasizing the need for a competitive yet collaborative regulatory environment to enhance the benefits of renewable energy innovations.

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