The Impact of Green Innovation on CO2 Emissions in China: Evidence from Spatial Regression Model

Using data from USPTO, CEADs, the Chinese Statistical Yearbook, and spatial econometric models for the panel of the 30 Chinese provinces for the period 2000 similar to 2019, this study explores and compares the impact of green and non-green innovation on CO2 emissions. The findings reveal a significant spatial correlation in CO2 emissions across provinces, validating the appropriateness of spatial econometric models for this analysis. The results indicate that both green and non-green innovations significantly reduce CO2 emissions, with green innovation having a more pronounced effect despite its lower prevalence. Additionally, patents and their citations notably enhance environmental quality in neighboring provinces through indirect effects. The empirical results highlight that China should focus on: (1) spatial spillover effects of technological, especially green, innovation; (2) removing barriers to green patent invention and citation; (3) transitioning from an energy-driven to a green innovation-driven economy; and (4) enhancing environmental quality by mitigating CO2 emissions.