What Is the Relationship between Technological Innovation and Energy Consumption? Empirical Analysis Based on Provincial Panel Data from China

Lei Jin, Keran Duan and Xu Tang
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Lei Jin: School of Business Administration, China University of Petroleum, Beijing 102249, China
Keran Duan: School of Business Administration, China University of Petroleum, Beijing 102249, China
Xu Tang: School of Business Administration, China University of Petroleum, Beijing 102249, China

Sustainability, 2018, vol. 10, issue 1, 1-13

Abstract: This paper investigates the relationship between energy consumption and technological innovation using a dynamic panel data model and regional-level data from China for the period 1995–2012. In contrast to previous studies, it examines the short and long-run bilateral relationship between technological innovation and energy consumption. The results show that in the short run, technological innovation leads to an increase in energy consumption, while energy consumption has no significant effect on technological innovation. In the long run, however, energy consumption is positively and bilaterally related to technological innovation. These findings suggest that although technological innovation does not directly lead to a reduction in energy consumption as mentioned in the extant literature, it could help achieve sustainability through improving energy efficiency and developing energy structure for developing countries.

Keywords: technological innovation; energy consumption; dynamic panel; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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