Evaluating the influence of environmental R&D on the SO2 intensity in China: evidence from dynamic spatial Durbin model analysis

Yuee Tang, Siyu Wu and Shuxing Chen

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 1, 1886-1905

Abstract: Green technology is a significant means to improve the environment and achieve sustainable development goals. According to the data of Chinese provincial panel from 2000 to 2016, our study investigated the spatial effect of environmental research and development (R&D) activities on SO2 intensity using the dynamic spatial Durbin model. First, SO2 intensity in China was shown to have obvious spatial correlation, strong path dependence, and spatial agglomeration features of ‘high-high’ as well as ‘low-low’. Second, both in the short- and long-term, environmental R&D activities had an essential negative influence on local SO2 intensity, but no significant effect on SO2 intensity in the neighbouring areas, indicating that the SO2 intensity reduction effect of environmental R&D activities was confined to local areas. Moreover, the long-term effect of environmental R&D activities on SO2 intensity was not enhanced, indicating that China's existing green technology is insufficient, which hinders the spillover influences of environmental R&D activities. Third, the short- as well as long-term effects of practical-type R&D on SO2 intensity were significantly negative, indicating that practical-type R&D can effectively reduce SO2 intensity. Invention-type R&D had a significant negative effect on local SO2 intensity, but no significant effect on neighbouring areas.

Date: 2023
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DOI: 10.1080/1331677X.2022.2094438

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