Solar energy investment, technological innovation and carbon emission reduction: Evidence from China

The aim of this paper is to investigate the impact of solar energy investment on carbon emissions. The STIRPAT model, a non-parametric additive regression model, and the vector autoregression model are built to investigate the comprehensive effect of solar energy investment on China’s carbon emissions. Solar energy investment and other factors related to carbon emissions are examined. The empirical study shows that it will take about 8 years for the solar energy investment to promote carbon emission reductions. The moderation analysis indicates that technological innovation has a moderating effect in the facilitation of carbon emission reduction by solar energy investment. The finding of this study has some meaningful policy implications. In order to achieve the goal of carbon emission reduction, China should keep solar energy investment continuous and steady and improve technological innovation.