The Role of Policy Narrative Intensity in Accelerating Renewable Energy Innovation: Evidence from China’s Energy Transition

Tingting Zheng, Chenchen Song () and Liu Cao
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Tingting Zheng: Qi Baishi School of Art, Hunan University of Science and Technology, Xiangtan 411201, China
Chenchen Song: Business School, Beijing Information Science and Technology University, Beijing 100192, China
Liu Cao: Department of Socio-Environmental Energy Science, Graduate School of Energy Science, Kyoto University, Yoshidahonmachi, Sakyo-ku, Kyoto 606-8501, Japan

Energies, 2025, vol. 18, issue 11, 1-28

Abstract: The energy transition is not only a technological or market-driven process but also a discursive and institutional challenge. While conventional research emphasizes financial incentives and regulatory frameworks, the role of policy narrative intensity in shaping renewable energy innovation has received limited empirical attention. This study addresses this gap by analyzing 8837 provincial-level policy documents (2005–2023) from 31 regions across China. We construct a policy narrative intensity index using the PMC framework to systematically assess how institutional discourse influences the direction and intensity of renewable energy development. The results reveal that a 1% increase in policy narrative intensity corresponds to a 4.60% rise in renewable energy innovation, as measured by renewable electricity generation, with robustness confirmed through IV and IHS methods. Regional heterogeneity is also evident: executive-led regions such as Jiangxi, Shandong, and Fujian exhibit higher narrative strength and stronger renewable energy outcomes, while market-driven provinces like Shanghai and Guangdong show weaker narrative alignment. Mechanism testing demonstrates that policy narratives enhance renewable energy innovation by (1) strengthening environmental regulation enforcement (β = 0.37), (2) increasing green patent activity by 23.6%, and (3) raising public adoption of renewable energy by 17.2 percentage points. This study highlights the governing value of policy narratives as institutional public goods and reveals their crucial role in aligning administrative capacity, corporate innovation, and public engagement to drive energy transition. These insights contribute to the broader discourse on SDG7/SDG13-aligned sustainability governance.

Keywords: policy narrative intensity; renewable energy innovation; energy transition; institutional discourse; renewable energy policy; sustainability governance; China (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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