The role of domestic R&D activities played in carbon intensity: Evidence from China

Abstract Most of the existing empirical studies exploring the role of domestic research and development (R&D) played in carbon intensity has confirmed that domestic R&D activities can effectively reduce carbon intensity. Unfortunately, the heterogeneity of R&D activities was ignored and the effect of domestic R&D on carbon intensity was discussed homogenously, that is, as a whole. Since R&D activities can be distinguished from stages and actors, we cannot obtain additional details such as the stages of R&D activities influencing carbon intensity. Additionally, regional differences were neglected. With these gaps in mind, the roles of R&D activities played in carbon intensity are deeply investigated by classifying them into different stages and actors. The empirical results based on a unique panel dataset from 2000 to 2016 imply that R&D can reduce carbon intensity and that carbon intensity is affected by R&D activities depending on its different stages and actors. The major positive role of R&D activities played in decreasing carbon intensity is generated through the activities at the experimental and developmental stages and industrial enterprises. Further analysis of China’s regional carbon intensity also suggests that policymakers should consider regional characteristics.