The impact of innovation on environmental quality: Evidence for the non-linear relationship of patents and CO2 emissions in China

We seek to test whether innovation, measured by the number of accepted patents improves or worsens environment in China. hypothesize existence an inverse U-shaped curve, which differs industry and provincial level development. In that context, we for a quadratic relationship between CO2 emissions per capita 30 provinces 32 economic sectors use novel fixed effect panel data quantile (FEQR) regression estimator differentiate energy-intensive non-energy intensive sectors, as well more less-developed find evidence relation patent generation both, less suggesting at low levels innovation new technologies tend be “dirty”, but high “green”. The same holds well. For more-developed provinces, opposite relation, explain with “rebound effect”.