The Impact of Renewable Energy Technology Innovation on the Low-Carbon Economic Transformation - Do Climate Risks and Policy Regulations Matter?

Abstract

In the context of sustainable development, renewable energy technology innovation is not only a vital approach for enhancing energy efficiency but also a critical driver of low-carbon economic transformation. Throughout this process, the importance of climate risks and policy regulations has become increasingly apparent. This paper aims to empirically examine the impact of renewable energy technology innovation on the transition to a low-carbon economy by analyzing panel data from 30 Chinese provinces from 2000 to 2021, with a particular focus on the moderating roles of climate risks and policy regulations. The main findings are summarized as follows: (1) renewable energy technology innovation contributes to low-carbon economic transformation, and this effect remains consistent after a series of robustness tests; (2) climate risk has a negative moderating effect on the transition to a low-carbon economy; (3) policy regulation can significantly promote low-carbon economic transformation. Additionally, we find that renewable energy technology innovation promotes low-carbon economic transformation by reducing air pollution intensity. Renewable energy technology innovation has a more significant effect on the low-carbon economy transition in regions with higher levels of economic development.