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Du, Weijian; Li, Mengjie; Wang, Zhaohua
Humanities & social sciences communications, 12/2024, Volume: 11, Issue: 1Journal Article
Abstract Existing research has focused mainly on the technological effects of rigid constraints such as low-carbon policies, but there has been little exploration of flexible constraints such as the government’s low-carbon concerns. To explore the role of flexible low-carbon constraints and effective paths for achieving low-carbon development, this paper theoretically and empirically investigates the influence of the government’s low-carbon concerns on local firms’ innovation in renewable energy technology and the underlying mechanism. Benchmark analysis shows that the government’s low-carbon concerns can improve renewable energy technology among firms in an area. Mechanism analysis reveals that low-carbon concerns promote firms’ renewable energy technology adoption by increasing the amount of research and development (R&D) investment and government subsidies and energy use costs of firms in the area. Heterogeneity analysis reveals that heterogeneity exists across technologies, firms, industries and locations in terms of the incentive impact of the government’s low-carbon concerns on the level of renewable energy technology innovation. Extensive analysis indicates that the government’s low-carbon concerns have a long-term incentive impact on the renewable energy technology of local firms and a positive demonstration impact on the renewable energy technology of neighboring firms. This study is helpful in that it explores the major driving factors behind the creation of a low-carbon economy and the achievement of climate targets.
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