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∼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.