How Strategic Interaction of Innovation Policies between China’s Regional Governments Affects Wind Energy Innovation

Chengming Li, Han Shi, Liangen Zeng and Xiaomeng Dong
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Chengming Li: School of Economics, Minzu University of China, Bejing 100081, China
Han Shi: School of Economics, Peking University, Bejing 100871, China
Liangen Zeng: College of Urban and Environmental Sciences, Peking University, Bejing 100871, China
Xiaomeng Dong: School of New Media, Peking University, Bejing 100871, China

Sustainability, 2022, vol. 14, issue 5, 1-20

Abstract: Prior research has shown the importance of innovation policies that promote innovation in renewable energy, such as wind power. We study the impact of the strategic interaction of innovation policies between regional governments in terms of wind energy innovation in China. Based on panel data from 2007 to 2018 on a provincial level in China, we construct an innovation strength index of each province in the wind power industry and investigate the inductive effect of the technology-push policy and the demand-pull policy, as well as their spatial spillover effect on wind energy innovation. The results show that the technology-push policy of local governments has an obvious inductive effect on wind energy innovation in the region, while also having a negative spillover effect through R&D factor competitions between regions with geography proximity or with proximity in the ranking of R&D funds input. In terms of the demand-pull policy, only changes at the national level can produce positive spillover effects by promoting expectations of market growth. Yet, competition between regions with proximity in the ranking of wind energy resource reserves produce negative spillover effects. The findings should have a far-reaching impact on the sustainable development of global wind power.

Keywords: wind energy innovation; strategic interaction; innovation policy; spatial spill over effect; China’s wind power market (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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