Can Technological Innovation in Renewable Energy Promote Carbon Emission Efficiency in China? A U-Shaped Relationship

Ruichen Yin, Haiying Pan () and Yuqing Lu ()
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Ruichen Yin: School of Economics and Finance, Hohai University, Nanjing 211100, China
Haiying Pan: Business School, Hohai University, Nanjing 211100, China
Yuqing Lu: School of Economics and Finance, Hohai University, Nanjing 211100, China

Sustainability, 2025, vol. 17, issue 15, 1-25

Abstract: In the context of growing global climate change awareness and intensifying environmental degradation, technological innovation in renewable energy has become a key realization method for sustainable development. This paper uses data samples from 30 provinces, municipalities, and autonomous regions in China (excluding Tibet, Hong Kong, Macao, and Taiwan due to data availability) from 2007–2022, constructs an SFA model to measure carbon emission efficiency, and innovatively investigates the U-shaped impact of technological innovation in renewable energy on carbon emission efficiency along with the moderating effects of informatization level and fiscal decentralization. The empirical findings reveal the following: (1) Technological innovation in renewable energy demonstrates a U-shaped impact on carbon emission efficiency, with a negative impact before inflection point 2.596605 and a positive impact after the inflection point. (2) The informatization level plays a positive regulating role in the impact of technological innovation in renewable energy toward carbon emission efficiency, while fiscal decentralization exerts a negative regulating effect. (3) The impact of technological innovation in renewable energy concerning carbon emission efficiency varies depending on regional differences, industrial structure levels, and technological innovation levels in renewable energy. The conclusions of this paper are helpful for promoting the development of technological innovation in renewable energy, improving carbon emission efficiency, and advancing sustainable socio-economic development.

Keywords: technological innovation in renewable energy; carbon emission efficiency; SFA model; informatization level; fiscal decentralization (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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