Carbon intensity reduction assessment of renewable energy technology innovation in China: A panel data model with cross-section dependence and slope heterogeneity

Climate change and global warming have become severe environmental issues of global concern, and many countries have promulgated renewable energy development planning to achieve the targets of carbon emission reduction and sustainable development. Accelerating the development of renewable energy technology innovation is one of the major measures to stimulate the utilization of renewable resources. This paper analyzes the impact of renewable energy technology innovation on carbon intensity in 30 Chinese provinces from 2000 to 2015. Using the recent panel estimation methods that take cross-section dependence and slope heterogeneity into account, the results show that for every 1% increase in the innovation level of renewable energy technology, carbon intensity was significantly reduced by 0.051%. Specifically, renewable energy technology innovation does not affect carbon intensity in the short term. But in the long term, the influences are negative and significant. Moreover, the environmental benefits are most evident in eastern China, while there is no significant influence on the western regions. Finally, this paper provides some policy implications to further discuss the impetus of renewable energy technology innovation.