Dynamic interaction of renewable energy technological innovation, environmental regulation intensity and carbon pressure: Evidence from China

• Published in: Renewable energy 2022-06, Vol.192, p.420-430
• Main Authors: Zhang, Zixuan, Chen, Huaichao
• Format: Article
• Language: English
• Subjects: Carbon pressure; Dynamic interaction effects; Environmental regulation intensity; Panel vector autoregressive model; Renewable energy technological innovation
• ISSN: 0960-1481; 1879-0682
• DOI: 10.1016/j.renene.2022.04.136

In 2020, China's carbon emissions were 10 billion tons, about 29% of global ones. As the largest carbon emitter in the world, China's heavy carbon emission pressure will affect not only its sustainable development, but also the global climate change situation and human survival. In order to achieve a positive interaction among renewable energy technological innovation, environmental regulation intensity and carbon pressure, and effectively alleviate China's carbon pressure, the dynamic interaction among the three aspects was investigated by taking 2008–2017 panel data of China mainland as the research sample, measuring carbon pressure level and renewable energy technological innovation, establishing panel vector autoregressive (PVAR) model, and adopting impulse response function and variance decomposition. It was found that a mutual promoting effect exists between renewable energy technological innovation and environmental regulation intensity, and also between renewable energy technological innovation and carbon pressure, while a mutual inhibiting effect between environmental regulation intensity and carbon pressure. The variance decomposition results show that carbon stress level has the highest contribution to the long-term variance of renewable energy technological innovation except for the variable itself, which is 10.2%. Renewable energy technological innovation has the highest variance contribution to environmental regulation intensity, which is 8.2%, and environmental regulation intensity has the highest variance contribution to carbon stress level, which is 28.1%. The conclusions of present study are helpful to clarify the dynamic interaction among renewable energy technological innovation, environmental regulation intensity and carbon pressure, further improve environmental regulation policy and renewable energy technological innovation R&D decision-making, and provide an effective way for China and the world to alleviate carbon pressure. [Display omitted]