How does international technology spillover affect China's carbon emissions? A new perspective through intellectual property protection

• Published in: Sustainable production and consumption 2021-01, Vol.25, p.577-590
• Main Authors: Hao, Yu, Ba, Ning, Ren, Siyu, Wu, Haitao
• Format: Article
• Language: English
• Subjects: Carbon emission; Foreign direct investment (FDI); Intellectual property protection; International technology spillover; Outward foreign direct Investment (OFDI); trade
• ISSN: 2352-5509; 2352-5509
• DOI: 10.1016/j.spc.2020.12.008

Environmental problems caused by climate change have become increasingly prominent, and the important role of technological advancement in reducing environmental pollution is receiving more attention. Under the conditions of an open economy, multi-channel international technology spillover has become an important way to improve a country's technological innovation capabilities. Based on the establishment of China's intellectual property protection (IPP) system, this paper integrates trade, foreign direct investment (FDI), and outward foreign direct investment (OFDI) into a unified international technology spillover framework and analyzes how international technology spillovers affect China's carbon emissions at different IPP levels. The results demonstrate that Trade, FDI, and OFDI increase regional carbon emissions and that trade has the greatest effect on carbon emissions’ growth. The regression results of the dynamic threshold demonstrate that as the regional IPP level exceeds the threshold, trade technology spillovers can reduce carbon emission, and that FDI and OFDI further increase carbon emissions. The impact of IPP and international technology spillovers on carbon emissions has regional heterogeneity in China. For the eastern and central regions, the interaction of international technology spillovers and IPP increases carbon emissions, while it has a significant inhibitory effect on carbon emissions in the western region. Therefore, to fully realize the role of international technology spillovers and IPP in reducing carbon emissions, China should implement differentiated IPP and international technology spillover policies.