Green innovation, clean energy, and emission trading policy: evidence from quasi-natural experiments

ABSTRACT

This paper constructs a unique dataset of clean energy and collects firm-level green innovation data that matches it with provinces and cities. Then, this paper executes quasi-natural experiments on green innovation to examine the effects of China's emission trading policy on green innovation. Further, this paper introduces the interactive terms of the pilot time and pilot area dummy variables into the spatial Durbin model (SDM) and spatial dynamic panel model (SDPM) to construct quasi-natural experiments to examine the spatial effect. The findings confirm a negative association between the ‘policy treatment effect’ and green innovation. The results also indicate a significant negative association between the emissions trading policy and clean energy. Besides, the empirical results reveal a positive correlation between clean energy and green innovation; clean energy promotes green innovation in the region and the surrounding areas. This paper complements existing research and provides empirical evidence and policy implications for developing clean energy, promoting green innovation, and improving the emission trading policy.

KEYWORDS:

• Clean energy
• emission trading policy
• green innovation
• spatial spillover effect

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Chongqing, Beijing, Shenzhen, Shanghai, Hubei, Guangdong, and Tianjin.

Additional information

Notes on contributors

Fei Yang

Fei Yang is a Ph.D. student in the School of Economics and Management at Wuhan University. His research interests are focused on quantitative economics. He has been working on studying innovation and economic growth. He has published his research in academic journals such as Technology Analysis & Strategic Management, Journal of Cleaner Production, Energy & Environment, Commercial Science Research, and Journal of Jiangxi Normal University (Natural Science Edition) etc.

Chunchen Wang

Chunchen Wang belongs to the School of Information Management at Jiangxi University of Finance and Economics. Her research interests are quantitative economic analysis of innovation and economic growth. She has published her research in academic journals such as Technology Analysis & Strategic Management, Journal of Cleaner Production, Energy & Environment, Journal of Jilin Business and Technology College, Journal of Sichuan Administration Institute, Journal of Jiangxi Normal University (Natural Science Edition), and Commercial Science Research etc.