National Innovation Empowerment and Carbon Emission Reduction: Heterogeneity in complex economical contexts

Abstract: The determinants that affect carbon dioxide emission reduction have been widely studied. With the innovative development of science and technology, more and more scholars are paying attention to the impact of innovation on CO2 emission reduction in countries. Scholars often have conflicting results based on research in specific fields or specific regions, however, how does national overall innovation capability directly or indirectly affect CO2 emission reduction still needs further empirical verification. Based on the panel data of 145 countries from 1996 to 2014, using the fixed effects model and the PVAR model, the authors find out that the national innovation capacity has a significantly laggard effect on CO2 emissions, and the marginal benefits of innovation increase in countries with a high level of innovative capacity. In addition, the quality of national regulation has an enhanced effect on the relationship between innovation and CO2 emission reduction, which has been verified by both fixed effects model and PVAR model.

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