Domestic R&D activities, technology absorption ability, and energy intensity in China

• Published in: Energy policy Vol. 138; pp. 111184 - 11
• Main Authors: Huang, Junbing, Chen, Xiang
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.03.2020; Elsevier Science Ltd
• Subjects: Absorption; Absorptivity; business enterprises; Capital stock; China; data collection; Domestic R&D; Education; Empirical analysis; empirical research; Energy; Energy development; Energy intensity; Energy management; Energy policy; Higher education; Human capital; Human capital stock; human resources; Industrial enterprises; issues and policy; Linear analysis; Nonlinear analysis; Panel threshold model; R&D; Reduction; Research & development; Residential energy; Technology; threshold models; China; Panel threshold model; Domestic R&D; Energy intensity; Human capital stock
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2019.111184

Domestic research and development (R&D) activities are critical for the development of China's low-carbon economy. The higher level of R&D inputs, the more advanced technology will generate, therefore contributing to the energy intensity reduction. In empirical studies, the effect of R&D activities on energy intensity has been investigated extensively, however, most studies consider R&D activities as a whole. Consequently, we lack detailed information on the role of each R&D player and stage for appropriate policy consideration. Furthermore, the effects of R&D activities may be determined by factors affecting technology absorptive ability. To understand the influence of R&D activities on energy intensity, we employ linear and nonlinear analyses using a Chinese provincial dataset covering 2000–2016. The linear analysis suggests that domestic R&D is powerful in reducing energy intensity. However, this positive effect is mainly from experimental and developmental R&D activities rather than basic R&D and application activities. Further, R&D activities by industrial enterprises have a stronger effect on energy intensity reduction than those of higher education and independent R&D institutions. Additional study using panel threshold models suggests that the effects are not linear but experience structural breaks when human capital stock and full-time equivalent (FEP) R&D personnel are at different levels. •We study the influence of R&D stages and actors on energy intensity in China.•The results suggest that indigenous R&D activities can reduce energy intensity.•This positive effect is mainly from experimental and developmental R&D activities.•The strongest effect on energy intensity reduction is from industrial enterprise R&D.•Policy should also increase R&D personnel for better energy intensity reduction.