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 CO 2 emissions, most studies ignore these effects in emerging economies. This paper examines how alternative energy production innovation (AEPI) reduces CO 2 emissions. Using a sample of 30 provinces in China during the 1997–2017 period, we find AEPI is negatively related to CO 2 emissions. Specifically, the results show that innovations in raw coal and crude oil are negatively related to CO 2 emissions, while innovations in natural gas are positively related to CO 2 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 CO 2 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. [Display omitted] • AEPI plays a significant role in reducing the CO 2 emissions of China. • Effects of different energy sources are heterogeneous. • Compared with natural gas, the innovation of coal and oil show stronger impacts on CO 2 emissions. [ABSTRACT FROM AUTHOR]