Investigating the heterogeneous nonlinear effect of renewable energy development on green total factor productivity: evidence from provincial-level data in China

Mingwei Li (), Xianzhong Mu (), Liang Xie (), Zhen Zeng () and Guangwen Hu ()
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Mingwei Li: Beijing University of Technology
Xianzhong Mu: Beijing University of Technology
Liang Xie: Beijing University of Technology
Zhen Zeng: Beijing University of Technology
Guangwen Hu: Beijing University of Technology

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2024, vol. 26, issue 5, No 94, 13429-13453

Abstract: Abstract The development of renewable energy has become an important measure for countries worldwide to improve air quality, reduce greenhouse gas emissions, and achieve sustainable development. This trend may have implications for green total factor productivity (GTFP), which represents the economic growth efficiency in terms of resource and energy use. However, the current research on the impact of renewable energy development (RED) on GTFP based on China's provincial data is still insufficient, and it has not yet integrated multiple factors such as economic, social, environmental, and technological aspects to jointly analyze potential nonlinear effects. This paper first calculates the GTFP of 30 provinces in China using a global super-efficiency slack-based measure model. Then, a two-way fixed effects model and a panel threshold regression (PTR) model were used to explore the linear and nonlinear effects of RED on GTFP. The results show that: First, RED has a significant positive effect on GTFP, which remains in effect after a sequence of robustness tests including endogenous treatment. For every 1% increase in RED, GTFP increases by 0.025%–0.039%. Second, the contribution of RED to GTFP shows a clear characteristic of diminishing marginal benefits, with the impact coefficient decreasing from 0.058% to 0.022%. Third, the higher the level of economic activity, social conditions, environmental protection, and technological advancement, the greater the favorable impact of RED on GTFP. The range of coefficient changes under the influence of economic- and social-level factors reaches 0.012%–0.143%, while the range of coefficient changes at the technological and environmental levels is only 0.026%–0.057%. Based on the above conclusions, some policy implications related to the development of renewable energy are proposed.

Keywords: Renewable energy development; Green total factor productivity; Panel threshold regression; China (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10668-023-04231-8

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