Green research and development activities and SO 2 intensity: an analysis for China
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RESEARCH ARTICLE
Green research and development activities and SO2 intensity: an analysis for China Yuee Tang 1
&
Shuxing Chen 2 & Junbing Huang 2
Received: 31 July 2020 / Accepted: 12 November 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Carrying out domestic research and development (R&D) activities can improve environmental performance. However, extant studies have not conclusively indicated that R&D activities in all energy fields lead to a reduction in the SO2 intensity. SO2 intensity is defined as the ratio of SO2 emissions to the GDP. Hence, green R&D activities are required. However, the strong heterogeneity between green R&D activities could have distinctive economic consequences. Thus, it is imperative to study the heterogeneity of green R&D activities on SO2 intensity. Moreover, previous studies have ignored regional differences. Although overlooked in the literature, a technology’s adsorptive ability could be a key determinant of the effects of green R&D activities on SO2 intensity. Based on a linear analysis of China’s provincial data over 2000–2016, we show that green R&D activities are instrumental in reducing SO2 intensity. Different green R&D activities have distinct goals and contrasting statistical effects on SO2 intensity. The empirical results show that the impact of green R&D activities on SO2 intensity differs by region. Lastly, it is proposed that green R&D activity effects on SO2 intensity are nonlinear by analysing a technology’s adsorptive ability. Keywords Green R&D activities . SO2 intensity . Panel threshold model
Introduction Recently, the Chinese economy has reached unprecedented heights. The negative outcome of this economic advancement is the massive consumption of energy and the resulting environmental pollution (Chen and Yu 2017; Zhou 2019). Sulphur dioxide (SO2) is a toxic chemical compound. It pollutes the air causing respiratory problems. Moreover, SO2 dissolves in water to form sulphurous acid, which has further adverse effects on the environment. Globally, China is the chief emitter of SO2 emissions; it exceeds the total emissions as a member of the Organisation for Economic Co-operation and Development (OECD; Liu et al. 2018a, b). In order to contain the SO2 emissions, the government of China has executed a sequence of policies. In this context, identifying the key Responsible Editor: Philippe Garrigues * Yuee Tang [email protected] 1
Chengdu University of Technology, Chengdu 610059, China
2
School of Economics, Southwestern University of Finance and Economics, Chengdu 611130, China
factors affecting the change in SO2 emissions is useful to devise a targeted strategy to control pollution, which is urgently needed to promote sustainable development. Besides the identification of these key factors, academics have also emphasised on SO2 intensity (Zhao et al. 2018; Zhou et al. 2019; Song et al. 2018; Li et al. 2010). Scholars have largely proposed technological progress and structural change to be the main influencers of SO2 intensity (C
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