Spatial spillover effect of non-fossil fuel power generation on carbon dioxide emissions across China's provinces

This paper focused on carbon emission reduction effect of non-fossil fuel power generation on electricity sector in China using the panel data of 30 provinces over the period 1991-2015. The empirical results of both dynamic, non-dynamic spatial panel analysis and the GS2SLS method aimed at eliminating endogeneity indicate that the increased share of non-fossil fuel power generation indeed reduce the CO2 emissions from electricity sector. However, although the spatial direct effects are positive driver for reduction of electricity-related CO2 emissions in each spatial weight matrix, on the contrary, the spatial indirect effects show that the rise of local share of non-fossil fuel power generation increases the CO2 emissions from electricity sector of other regions. This so-called "beggar-thy-neighbor" effect in the process of implementing clean-oriented energy strategy reflects an urgent need of mutually beneficial coordination mechanism between regions so as to bring maximum environmental benefits of installed clean power for the whole country. (C) 2019 Elsevier Ltd. All rights reserved.