Impacts of alternative energy production innovation on reducing CO2 emissions: Evidence from China

Although environmental economics research explores the impacts of green innovation on reducing CO2 emissions, most studies ignore these effects in emerging economies. This paper examines how alternative energy production innovation (AEPI) reduces CO2 emissions. Using a sample of 30 provinces in China during the 1997-2017 period, we find AEPI is negatively related to CO2 emissions. Specifically, the results show that innovations in raw coal and crude oil are negatively related to CO2 emissions, while innovations in natural gas are positively related to CO2 emissions. This study contributes to research on technological innovation and environmental economics. First, we find AEPI as the main driver of all types of green innovation in reducing CO2 emissions. Second, we explore the heterogeneous effects of different energy sources and deepen our understanding of different reduction mechanisms. Third, this study makes a methodological contribution to research using a series of quantitative analyses.