Encouraging technology introduction: pathway to optimizing energy intensity in emerging economies

Jinlin Zheng, Yaohui Jiang, Zhaowen Zhang, Baoyu Wen, Tiantian Li and Yue Shen

Applied Economics, 2025, vol. 57, issue 11, 1221-1238

Abstract: China is often censured for its high CO2 emissions and energy intensity, and the introduction and diffusion of advanced production technologies provide an important way to reduce energy intensity. The Catalogue of Encouraging Technology Introduction (CETI), implemented in 2006, aims to encourage enterprises to introduce advanced production technologies by granting income tax incentives. Taking the implementation of the CETI as a quasi-natural experiment, this study constructs difference-in-differences models to verify the influence of encouraging technology introduction on energy intensity. The empirical results show that the policy encouraged enterprises to reduce their energy intensity by an average of 8.6%. The mechanism test shows that: First, encouraging technology introduction promotes capital renewal of enterprises, eliminates outdated production capacity, and improves enterprise productivity. Second, the introduction of technology has accelerated the pace of enterprise energy structure transformation. Third, the introduction of advanced production technology provides the foundation for indigenous innovation of local enterprises and promotes the diffusion of advanced production technology in the industry.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2024.2311738 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:57:y:2025:i:11:p:1221-1238

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2024.2311738

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().