Politická ekonomie X:X | DOI: 10.18267/j.polek.1549

How green innovation shapes the low-carbon transition of the energy structure

Xiaoyan Wen, Tao Li
School of Marxism, Longdong University, Qingyang, Gansu, China

Guided by the national “dual carbon” goals, green innovation has become a critical driver of the low-carbon transformation of energy systems. This study employs provincial panel data from China covering the period 2011–2022 and adopts a two-way fixed effects model for regression analysis. It further incorporates mediation effects, moderation effects, and quantile regression methods to examine how green innovation influences the low-carbon transformation of the energy structure. The results show that green innovation significantly promotes the optimization of the energy structure, and its effects vary notably across different levels of decarbonization, industrial structures, policy environments, and regional development conditions.

Keywords: low-carbon transformation of the energy structure; green innovation; industrial upgrading; governmental environmental attention

Received: May 30, 2025; Revised: September 23, 2025; Accepted: January 19, 2026; Prepublished online: March 18, 2026 

Download citation

References

  1. Aghion, P., & Howitt, P. (1992). A model of growth through creative destruction. Econometrica, 60(2), 323-351. https://doi.org/10.2307/2951599 Go to original source...
  2. Ahmed, Z., Cary, M., Ali, S., Murshed, M., Ullah, H., & Mahmood, H. (2022). Moving toward a green revolution in Japan: Symmetric and asymmetric relationships among clean energy technology development investments, economic growth, and CO2 emissions. Energy & Environment, 33(7), 1417-1440, 0958305x211041780. https://doi.org/10.1177/0958305x211041780 Go to original source...
  3. Chen, Z. F., Hao, X. Y., & Chen, F. L. (2023). Green innovation and enterprise reputation value. Business Strategy and the Environment, 32(4), 1698-1718. https://doi.org/10.1002/bse.3213 Go to original source...
  4. Dai, S. W., Tang, D. Y., Li, Y. F., & Lu, H. X. (2025). Digital trade, trade openness, FDI, and green total factor productivity. International Review of Financial Analysis, 97, 103777. https://doi.org/10.1016/j.irfa.2024.103777 Go to original source...
  5. Jiang, Y., Xu, J., & Wang, G. F. (2024). Trade in green patents: How do green technologies flow in China? Journal of Technology Transfer, 49(3), 823-856. https://doi.org/10.1007/s10961-023-10006-0 Go to original source...
  6. Leiter, A. M., Parolini, A., & Winner, H. (2011). Environmental regulation and investment: Evidence from European industry data. Ecological Economics, 70(4), 759-770. https://doi.org/10.1016/j.ecolecon.2010.11.013 Go to original source...
  7. Li, J., Dong, K., & Dong, X. (2022). Green energy as a new determinant of green growth in China: The role of green technological innovation. Energy Economics, 114, 106260. https://doi.org/10.1016/j.eneco.2022.106260 Go to original source...
  8. Li, J. M., Dong, K. Y., & Dong, X. C. (2022). Green energy as a new determinant of green growth in China: The role of green technological innovation. Energy Economics, 114, 106260. https://doi.org/10.1016/j.eneco.2022.106260 Go to original source...
  9. Liu, Y. Q., Zhu, J. L., Li, E. Y., Meng, Z. Y., & Song, Y. (2020). Environmental regulation, green technological innovation, and eco-efficiency: The case of Yangtze river economic belt in China. Technological Forecasting and Social Change, 155, 119993. https://doi.org/10.1016/j.techfore.2020.119993 Go to original source...
  10. Liu, Y. X., Lei, P., & He, D. Y. (2024). Endogenous green technology progress, green transition and carbon emissions. International Review of Economics & Finance, 91, 69-82. https://doi.org/10.1016/j.iref.2023.12.007 Go to original source...
  11. Ma, H. Y., Oxley, L., & Gibson, J. (2009). Substitution possibilities and determinants of energy intensity for China. Energy Policy, 37(5), 1793-1804. https://doi.org/10.1016/j.enpol.2009.01.017 Go to original source...
  12. Opazo-Basáez, M., Monroy-Osorio, J. C., & Maric, J. (2024). Evaluating the effect of green technological innovations on organizational and environmental performance: A treble innovation approach. Technovation, 129, 102885. https://doi.org/10.1016/j.technovation.2023.102885 Go to original source...
  13. Pilatin, A., Radulescu, M., Alofaysan, H., Barut, A., & Huseynova, R. (2025). Smart solutions for sustainable access and technological equity: The effect of energy transition, artificial intelligence, and digital economy on energy poverty. Geological Journal. https://doi.org/10.1002/gj.5236 Go to original source...
  14. Radulescu, M., Cifuentes-Faura, J., Mohammed, K. S., & Alofaysan, H. (2024). Energy efficiency and environmental regulations for mitigating carbon emissions in Chinese Provinces. Energy Efficiency, 17(6), 67. https://doi.org/10.1007/s12053-024-10248-3 Go to original source...
  15. Ramzan, M., Razi, U., Quddoos, M. U., & Adebayo, T. S. (2023). Do green innovation and financial globalization contribute to the ecological sustainability and energy transition in the United Kingdom? Policy insights from a bootstrap rolling window approach. Sustainable Development, 31(1), 393-414. https://doi.org/10.1002/sd.2399 Go to original source...
  16. Shen, Y. C., & Ren, X. P. (2023). Digital finance and upgrading of industrial structure: Prefecture-level evidence from China. Finance Research Letters, 55, 103982. https://doi.org/10.1016/j.frl.2023.103982 Go to original source...
  17. Tao, W. L., Weng, S. M., Chen, X. L., Alhussan, F. B., & Song, M. L. (2024). Artificial intelligence-driven transformations in low-carbon energy structure: Evidence from China. Energy Economics, 136, 107719. https://doi.org/10.1016/j.eneco.2024.107719 Go to original source...
  18. Wang, H. Q., & Wei, W. X. (2020). Coordinating technological progress and environmental regulation in CO2 mitigation: The optimal levels for OECD countries & emerging economies. Energy Economics, 87, 104510. https://doi.org/10.1016/j.eneco.2019.104510 Go to original source...
  19. Wen, J., Zhao, X. X., Fu, Q., & Chang, C. P. (2023). The impact of extreme weather events on green innovation: Which ones bring to the most harm? Technological Forecasting and Social Change, 188, 122322. https://doi.org/10.1016/j.techfore.2023.122322 Go to original source...
  20. Wu, B., Ma, W. X., & Zhao, Q. (2025). Digital economy and urban green transformation. International Review of Financial Analysis, 104, 104286. https://doi.org/10.1016/j.irfa.2025.104286 Go to original source...
  21. Wu, T., & Kung, C. C. (2020). Carbon emissions, technology upgradation and financing risk of the green supply chain competition. Technological Forecasting and Social Change, 152, 119884. https://doi.org/10.1016/j.techfore.2019.119884 Go to original source...
  22. Xia, L., Han, Q. J., & Yu, S. (2024). Industrial intelligence and industrial structure change: Effect and mechanism. International Review of Economics & Finance, 93, 1494-1506. https://doi.org/10.1016/j.iref.2024.04.002 Go to original source...
  23. Xiaobao, P., Jian, W., Yuhui, C., Ali, S., & Qijun, X. (2024). Does the carbon emission trading pilot policy promote green innovation cooperation? Evidence from a quasi-natural experiment in China. Financial Innovation, 10(1), 14. https://doi.org/10.1186/s40854-023-00556-5 Go to original source...
  24. Xie, W. Y., Qing, Y., Tao, L. X., Li, W. Y., & Wen, C. H. (2025). Spatial spillover effects of environmental regulation on ecological industrialization: Evidence from the upper reaches of the Yangtze River. International Review of Economics & Finance, 98, 103862. https://doi.org/10.1016/j.iref.2025.103862 Go to original source...
  25. Xu, D. Y., Abbas, S., Rafique, K., & Ali, N. (2023). The race to net-zero emissions: Can green technological innovation and environmental regulation be the potential pathway to net-zero emissions? Technology in Society, 75, 102364. https://doi.org/10.1016/j.techsoc.2023.102364 Go to original source...
  26. Xu, R. Y., Wang, K. L., & Miao, Z. (2024). The impact of digital technology innovation on green total-factor energy efficiency in China: Does economic development matter? Energy Policy, 194, 114342. https://doi.org/10.1016/j.enpol.2024.114342 Go to original source...
  27. Yang, S., Wang, J., Dong, K., & Jiang, Q. (2023). A path towards China's energy justice: How does digital technology innovation bring about a just revolution? Energy Economics, 127, 107056. https://doi.org/10.1016/j.eneco.2023.107056 Go to original source...
  28. Yuan, D. L., Wu, X. M., Shang, D., & Pan, L. L. (2025). How government environmental attention influences corporate green innovation: A chain mediating model. Technological Forecasting and Social Change, 218, 124195. https://doi.org/10.1016/j.techfore.2025.124195 Go to original source...
  29. Zhang, J. X., Yu, S. W., Zhang, Y. J., Su, B., & Sun, Y. F. (2025). How do renewable energy policies affect energy green development? Evidence from Chinese listed energy firms. Energy Economics, 142, 108154. https://doi.org/10.1016/j.eneco.2024.108154 Go to original source...
  30. Zhang, W. L., Song, L. Y., & Ilyas, M. (2023). Can the digital economy promote fiscal effort?: Empirical evidence from Chinese cities. Economic Change and Restructuring, 56(5), 3501-3525. https://doi.org/10.1007/s10644-023-09540-6 Go to original source...
  31. Zhang, Y., Wang, C. A., Liu, X. Q., Zhang, X. M., & Dagestani, A. (2025). Does the national ecological civilization pilot zone achieve a "win-win" circumstance for the environment and the economy: empirical evidence from China. Applied Economics. https://doi.org/10.1080/00036846.2024.2445323 Go to original source...
  32. Zhao, Q. Y., Jiang, M., Zhao, Z. X., Liu, F., & Zhou, L. (2024). The impact of green innovation on carbon reduction efficiency in China: Evidence from machine learning validation. Energy Economics, 133, 107525. https://doi.org/10.1016/j.eneco.2024.107525 Go to original source...
  33. Zhao, Z. Y., Zhao, Y. H., Shi, X. P., Zheng, L., Fan, S. A., & Zuo, S. M. (2024). Green innovation and carbon emission performance: The role of digital economy. Energy Policy, 195, 114344. https://doi.org/10.1016/j.enpol.2024.114344 Go to original source...

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.