1. Introduction
With the rapid economic and social development of recent years, global climate change has become increasingly severe, evolving into a major challenge for the international community and diverse organizations that gradually threatens human survival and sustainable development [
1]. According to the International Panel on Climate Change (IPCC) report, global greenhouse gas (GHG) emissions have continued to increase over recent decades. Additionally, a series of ecological and environmental problems, including global temperature rises and environmental pollution, have occurred. Many countries are faced with challenges in reducing GHG emissions and have committed to reducing carbon emissions and formulated corresponding policies and targets [
2]. In September 2020, at the 75th UN General Assembly, Chinese President Xi Jinping announced that China would enhance its nationally determined contributions to strive to peak carbon emissions before 2030 and achieve carbon neutrality before 2060, which is a significant measure for China’s sustainable development.
Based on China’s current situation, energy consumption will continue to increase alongside economic growth in the present and for a long period to come. How to protect the environment and reduce carbon emissions while maintaining economic growth, thus achieving “carbon peak, carbon neutrality” goals and realizing sustainable development, has become a key focus for government departments, enterprises, research institutions, and scholars. The key to the synergistic advancement of economic growth, energy conservation, and carbon reduction lies in improving carbon emission efficiency. It is defined as the carbon emissions per unit of energy consumption or economic output, reflecting the carbon intensity of energy use or economic development [
3].
According to the International Energy Agency’s 2024 global CO2 emissions report, energy-related carbon dioxide emissions increased by 1.1% in 2023, adding 410 million tons to reach 37.4 billion tons, which is a record high value, with coal combustion accounting for over 65% of the emissions increase. Therefore, promoting the development and application of renewable energy is particularly crucial. Renewable energy sources, including solar, wind, hydro, biomass, and geothermal, possess clean and renewable characteristics. They can effectively reduce reliance on fossil fuels. In recent years, China has actively promoted renewable energy development, with hydropower, wind, and solar installations and generation capacity ranking first globally. China has also achieved economic growth while reducing carbon emissions and improving carbon efficiency. However, renewable energy development faces challenges, including uneven resource distribution, significant temporal–spatial fluctuations, limited grid absorption capacity, and relatively high costs. Therefore, accelerating technological innovation in renewable energy, breaking through key technical bottlenecks, reducing costs, and enhancing technical efficiency are crucial measures for large-scale renewable adoption, improving carbon efficiency and promoting sustainable development.
This paper aims to scientifically evaluate the U-shaped impact of technological innovation in renewable energy on carbon emission efficiency and investigate potential mechanisms, as most existing studies focus on linear impact, but few test nonlinearities. This paper also proposes policy recommendations to promote technological innovation in renewable energy, enhance carbon efficiency, and advance sustainable development. The remaining structure of this paper is as follows:
Section 2 presents a literature review,
Section 3 outlines the research hypotheses,
Section 4 describes model construction and variable selection,
Section 5 provides the empirical analysis, and
Section 6 presents conclusions and policy recommendations.
2. Literature Review
Technological innovation in renewable energy has become a hot topic in academia. The existing literature mainly measures technological innovation in renewable energy by constructing a multidimensional indicator system based on patent data and forms differentiated methods at the data acquisition and processing levels. Studies often use the absolute values of patent applications or authorizations to represent the level of innovation. For example, Ma Limei and Si Lu (2022) manually searched the database of the State Intellectual Property Office of China using international patent classification (IPC) and constructed a patent authorization dataset covering 285 cities from 2010 to 2019 [
4]. Wang Jianlong et al. (2024) further refined the technology classification and constructed a comprehensive patent index by integrating five types of IPC codes, such as hydropower and wind power, highlighting the heterogeneous characteristics of technological innovation in renewable energy [
5]. Li Fan et al. (2021) [
6] compared China with other countries concerning technological innovation in renewable energy. In 2020, the number of patents for renewable energy technologies in China was 3.1 times that of the United States and 4.2 times that of Japan. Nevertheless, China’s R&D expenditure still trails that of developed countries. In 2020, China’s public R&D expenditure on renewable energy amounted to USD 450 million, whereas the public R&D expenditures of the United States and the Netherlands reached as high as USD 4 billion and 4.5 billion, respectively. It is worth noting that some scholars have begun to pay attention to patent quality and knowledge flow effects. For example, Qi Shaozhou and Zhang Zhenyuan (2019) selected high-value patents of the European Patent Office (EPO) as proxy variables [
7]. Liu Juan et al. (2023) innovatively introduced the knowledge diffusion rate and decay rate, using the dynamic adjustment function to measure the knowledge stock [
8]. These methods complement each other in terms of spatial coverage (national and city levels), data sources (international institutions and domestic databases), and indicator attributes (quantitative and qualitative), providing methodological support for revealing technological innovation in renewable energy [
9]. Existing studies have conducted in-depth discussions on the influencing factors of technological innovation in renewable energy. For example, Nepal et al. (2024) confirmed that the policy of the green finance reform pilot zone improves innovation capabilities by improving the financing efficiency of green projects [
10]. Chen et al. (2025) further found that green credit would promote technological breakthroughs in clean energy enterprises through debt structure adjustments and enterprise innovation intermediary effects [
11]. As an emerging tool, Wei et al. (2024) demonstrated that digital finance can generate differentiated incentives for qualitative and quantitative innovation by easing financing constraints and information disclosure mechanisms [
12]. Existing studies have also conducted specific research on the role of technological innovation in renewable energy. Luo et al. (2024) verified the driving role of technological innovation in renewable energy on GDP growth from the perspective of macroeconomic growth, emphasizing that it is a key path for the coordinated development of the economy and the environment [
13]. At the industrial structure level, Zheng et al. (2023) found that technological innovation in renewable energy promotes the upgrading of green industrial structures by increasing the penetration rate of green technology [
14]. Wang and Chen (2024) [
15] further revealed the nonlinear mechanism of technological innovation on carbon productivity. Its direct effect and spatial spillover effect together constitute the driving force of regional low-carbon transformation, and the indirect effect even exceeds the local impact. Yang et al. (2024) emphasized the nonlinear characteristics of technological innovation and revealed the regulatory role of R&D investment and the industrial development level threshold of industrial green transformation [
16]. In addition, Huang et al. (2024) [
17] expanded the research boundaries from the perspective of corporate governance. They found that technological innovation strengthens environmental governance effectiveness by reducing ESG “greenwashing” risks, particularly in the context of diversified board experience and strengthened media supervision.
In the context of green and low-carbon transformation and development, carbon emission efficiency has always been a hot topic of research. At present, scholars have carried out in-depth and detailed research on carbon emission efficiency, mainly relying on parametric and non-parametric methods. The parametric method is represented by stochastic frontier analysis (SFA). For example, Zhang and Chen used the SFA model to measure the overall carbon emission efficiency of provinces in the Yangtze River Economic Belt [
18]. Wang et al. used the SFA model to calculate the green technology efficiency, whcih can be used to measure carbon emission efficiency [
19]. Zhu and Lan used the SFA model of carbon emissions to calculate the carbon rebound effect under the digital economy [
20]. Zhang et al. used the SFA model to measure the shadow price of sulfur dioxide and COD emissions from industrial enterprises [
21]. Chen et al. used the DEA model to measure the carbon emission efficiency of sewage treatment plants [
22]. Cai et al. calculated the carbon emission efficiency of 280 cities in China and found that the SFA method solved the problem of underestimating carbon emission efficiency [
23]. In general, the existing literature on the SFA model for measuring carbon emission efficiency is mainly based on Battese et al.’s research settings [
24]. The non-parametric method is represented by data envelopment analysis (DEA). Chen Xiaohong et al. (2017) proposed a three-stage SBM-DEA model [
25], and Yue Li and Han Liang (2022) introduced the information and communication technology (ICT) capital and human capital biased technology perspective to construct a super-SBM model [
26]. Liu Kang et al. (2022) and Cheng Yuan et al. (2022), respectively, calculated the carbon emission efficiency of provinces across China and prefecture-level cities in Zhejiang Province through the three-stage super-efficiency SBM-DEA model [
27,
28]. Bi Doudou et al. (2018) combined the exploratory spatiotemporal data analysis framework with traditional DEA, focusing on the spatiotemporal transition law of carbon emission efficiency in the tourism industry [
29]. Hu Jianbo et al. (2021) innovatively combined the non-competitive input–output model with the three-stage DEA model [
30]. The academic community has also conducted extensive discussions on the factors that may affect carbon emission efficiency. Jiang Jinhe (2011) believes that economic factors are the most important reason affecting carbon emissions [
31]. Chen Biqiong (2014) found that China’s carbon emission intensity will be affected by a series of factors, such as financial efficiency and financial scale [
32]. Antonietti et al. (2019) and Ren Xiaosong (2020) found that improving energy efficiency can promote the reduction of carbon emission intensity; meanwhile, the level of economic agglomeration is negatively correlated with carbon emission intensity [
33,
34]. Sun Yanlin et al. (2016) empirically demonstrated that the optimization of industrial structure and the implementation of energy target constraint policies can promote the improvement of carbon emission efficiency [
35]. Song Jiekun et al. (2018) and Pan et al. (2019) found that the degree of opening up, population size, and industrialization can also affect the level of carbon emission efficiency [
36,
37].
Technological innovation in renewable energy belongs to the category of technological innovation. At present, scholars have conducted some research on the carbon emission reduction effects of technological innovation and its sub-sectors. The research on the emission reduction effect of technological innovation originated from the “Porter hypothesis” [
38]. Currently, scholars hold different views on the “Porter hypothesis”. Some scholars agree with the “Porter hypothesis”, while some scholars conduct research from the perspective of empirical analysis and do not support the “Porter hypothesis”. They believe that strict environmental policies are not conducive to technological innovation and carbon emission reduction. However, most scholars believe that the hypothesis needs to meet certain threshold conditions for it to be established [
39]. At present, research on the sub-fields of technological innovation mainly focuses on green technological innovation. Some studies believe that green technological innovation can significantly reduce carbon emissions. For example, Xu et al. found that green technological innovation has a significant inhibitory effect on carbon emissions [
40]. Some scholars also found that this phenomenon is universal around the world. For example, in N-11 countries [
41], G7 countries [
42], Singapore [
43], and BRICS countries [
44], green technological innovation has been proven to significantly reduce carbon emissions. Others believe that this effect requires certain additional conditions. For example, contrary to Xu et al.’s universal reduction, Razzaq et al. [
45] pointed out that the carbon reduction effect of green technological innovation needs to meet certain conditions. To be specific, it can only reduce carbon emissions when the regional carbon emission level is high. Shan et al. used the ARDL model to analyze and point out that green technological innovation will significantly reduce carbon emissions in the long and short term, but the short-term impact effect is weak [
46]. Xu Bin et al. pointed out that the carbon reduction effect of green technological innovation needs to meet the small scale of clean energy and the rapid growth of energy consumption [
47]. There are few studies on the technological innovation in renewable energy. As far as technological innovation in renewable energy is concerned, income is an important factor that causes regional differences in emission reduction effects. Only when income reaches a certain level can technological innovation in renewable energy achieve carbon emission reduction effects, and its marginal emission reduction effect increases with income growth [
48,
49]. Ma Limei and Si Lu (2022) found that regional differences affect the impact of technological innovation in renewable energy concerning carbon emissions [
4].
In summary, domestic and foreign scholars have conducted some research on technological innovation in renewable energy and carbon emission efficiency. But, unfortunately, existing studies mainly focus on the linear impact of technological innovation on carbon emission efficiency, while ignoring the possible nonlinear relationship between the two and the possible influencing mechanism. The marginal contribution of this paper is to establish an SFA model with an inefficiency term to measure carbon emission efficiency, and explore the nonlinear relationship and influencing mechanism between technological innovation in renewable energy and carbon emission efficiency. It is meaningful for promoting the advancement of renewable energy technology in China to improve carbon emission efficiency, thus promoting the realization of sustainable development.
3. Research Hypotheses
3.1. Analysis on the Impact of Technological Innovation in Renewable Energy Concerning Carbon Emission Efficiency
Technological innovation in renewable energy will increase the supply and use of renewable energy, thereby reducing dependence on fossil fuels and decreasing the total amount of carbon emissions. It is beneficial for improving carbon emission efficiency. However, technological innovation in renewable energy will also bring some negative effects. For example, it may increase the cost and energy consumption of production and transportation, causing instability and intermittency in renewable energy. Meanwhile, more energy storage and regulation equipment would be required. These effects will reduce the efficiency and reliability of renewable energy and increase the intensity of carbon emissions. This is not conducive to improving carbon emission efficiency. Therefore, determining the impact of technological innovation in renewable energy for carbon emission efficiency is a dynamic process. It depends on the speed and level of technological innovation in renewable energy, as well as the substitution and complementary effects between renewable energy and fossil energy [
50,
51]. Based on the environmental Kuznets curve (EKC) theory and learning-by-doing effects [
52], this paper proposes that there is a U-shaped relationship between technological innovation in renewable energy and carbon emission efficiency. To be specific, technological innovation in renewable energy will lead to a decrease in carbon emission efficiency in the beginning. But, when technological innovation in renewable energy reaches a certain level, carbon emission efficiency will increase accordingly. In the early stage of technological innovation in renewable energy, the negative impact may exceed the positive impact, resulting in a decrease in carbon emission efficiency. In the later stages of technological innovation in renewable energy, the positive impact may outweigh the negative impact, leading to an increase in carbon emission efficiency.
The U-shaped relationship between technological innovation in renewable energy and carbon emission efficiency can be explained by the following factors. The first factor is economic growth. Technological innovation in renewable energy can promote economic growth. According to the EKC theory, economic growth will also increase energy consumption and carbon emissions, thereby reducing carbon emission efficiency. Only when economic growth reaches a certain level can technological innovation in renewable energy significantly improve carbon emission efficiency. The second factor is high upfront R&D costs. The early stage of the development of technological innovation in renewable energy requires substantial costs. Meanwhile, the issue of resource misallocation may occur. According to learning-by-doing effects, when the development of technological innovation in renewable energy reaches maturity, the cost can be significantly reduced. Additionally, new technology can be extensively applied. Moreover, the problem of resource misallocation can be mitigated, thereby enhancing the efficiency of carbon emissions. The third factor is energy structure transformation. Technological innovation in renewable energy can promote energy structure transformation. According to the EKC theory, the early stage of energy structure transformation will lead to pollution and other environmental issues, thereby delaying the improvement of carbon emission efficiency. Only when the energy structure transformation reaches a certain level can technological innovation in renewable energy significantly improve the energy structure, thereby improving carbon emission efficiency [
53,
54].
Therefore, hypothesis H1 is proposed:
Hypothesis 1 (H1). The impact of technological innovation in renewable energy concerning carbon emission efficiency has a U-shaped curve characteristic.
3.2. Analysis on the Moderating Effect of the Informatization Level
The informatization level refers to the application and prevalence of information technology in a country or region, encompassing aspects such as data management, information sharing, and intelligent decision-making. This paper calculates the ratio of the total amount of post and telecommunications services to the regional GDP. High levels of informatization facilitate rapid information flow and processing, thereby enhancing the accuracy of the decision-making process, as well as reshaping the impact of technological innovation on carbon emission efficiency [
55]. Regions with advanced informatization are often more capable of absorbing and applying new technologies. For instance, the application of smart grids and Internet of Things (IoT) technologies can optimize the production and distribution of renewable energy, thus improving energy use efficiency. Additionally, informatization promotes interactions between consumers and producers, advancing the implementation of demand-side management. However, improving informatization requires substantial infrastructure development, including communication and energy equipment. In the short term, these infrastructures not only generate almost no revenue during their initial construction phase, but also consume a large amount of energy and lead to a decline in carbon emission efficiency, thereby causing a rightward shift in the inflection point of the U-shaped curve describing the impact of technological innovation in renewable energy concerning carbon emission efficiency.
In the initial stage of technological innovation in renewable energy, carbon emission efficiency may decline due to technological immaturity. In the long term, as infrastructure projects begin to generate returns, informatization can mitigate the negative impacts caused by technological innovation due to its time-lagged effect. At this phase, advanced informatization can mitigate the negative impacts of technological innovation by optimizing resource allocation and accelerating information circulation. For example, through informatization platforms, enterprises can promptly access market information and technical support, thereby reducing uncertainties in technology implementation and accelerating the recovery of carbon emission efficiency. When informatization reaches a high level, improvements in informatization will significantly amplify the positive effects of innovation. Mature technologies, supported by informatization, can achieve higher economic and environmental benefits. Informatization facilitates big data analysis and intelligent decision-making, enabling enterprises to better predict market demand and energy consumption, thereby enhancing their carbon emission efficiency. For instance, big data analytics can help enterprises optimize production processes, reduce energy consumption, and lower carbon emissions.
In summary, the enhancement of informatization levels leads to a rightward shift in the inflection point of the U-shaped curve characterizing the impact of technological innovation in renewable energy concerning carbon emission efficiency. Concurrently, informatization plays a crucial positive moderating role in this relationship. Therefore, advancing informatization infrastructure and elevating its level are of great significance for fostering a synergistic interaction between technological innovation in renewable energy and carbon emission efficiency.
Based on the above, hypothesis H2 is proposed:
Hypothesis 2 (H2). The level of informatization induces a rightward shift in the inflection point of the U-shaped curve effect of technological innovation in renewable energy concerning carbon emission efficiency, while simultaneously exerting a positive moderating role.
3.3. Analysis on the Moderating Effect of Fiscal Decentralization
Fiscal decentralization refers to the transfer of taxation, expenditure, and fiscal management authority from central to local governments, aiming to increase local autonomy and accountability, thereby improving the efficiency and quality of public services. This paper uses the per capita fiscal expenditure of each region/(per capita fiscal expenditure of each region + per capita fiscal expenditure of the central government) to calculate it. Theoretically, fiscal decentralization enables local governments to formulate more targeted policies based on regional economic, social, and environmental conditions, thereby driving technological innovation in renewable energy more effectively [
56]. Consequently, fiscal decentralization may induce a leftward shift in the inflection point of the U-shaped relationship between technological innovation in renewable energy and carbon emission efficiency. The following four aspects could support this phenomenon.
Firstly, fiscal decentralization grants local governments greater autonomy in taxation and expenditure, which may motivate them to take proactive measures toward technological innovation in renewable energy. Local governments can design tailored incentive policies based on their economic conditions and environmental needs to promote renewable energy projects. Secondly, fiscal decentralization allows local governments to allocate resources more flexibly, selecting the most suitable renewable energy technologies based on regional environmental and economic conditions. This flexibility reduces resource waste and enhances carbon emission efficiency. Thirdly, under fiscal decentralization, local governments are closer to markets and communities, enabling them to acquire timely information on renewable energy innovation and carbon emission efficiency. Such feedback mechanisms empower local governments to adjust policies and resource allocation in response to market demands and technological advancements, thereby improving the adaptability of renewable energy technologies and strengthening their positive impact on carbon emission efficiency. Finally, fiscal decentralization may trigger intergovernmental competition, prompting local governments to engage in active benchmarking and learning in renewable energy innovation. This competitive dynamic incentivizes continuous optimization of policies and measures, driving technological innovation and enhancing carbon emission efficiency.
The moderating role of fiscal decentralization lies in its ability to reshape the implementation pathways of technological innovation by altering the incentive structures of local governments. While greater autonomy enables local governments to accelerate technology commercialization through targeted subsidies, tax incentives, and local experimentation (e.g., pilot zones), excessive decentralization may lead to local protectionism and redundant construction, dispersing innovation resources and causing efficiency losses, thereby exerting a negative moderating effect on the relationship between renewable energy innovation and carbon emission efficiency [
57]. The specific mechanisms can be explained through the following three aspects.
Firstly, fiscal decentralization exhibits threshold effects. When the degree of decentralization exceeds a critical value (e.g., a local fiscal autonomy rate exceeding 69.65% [
58]), local governments transition from “policy implementers” to “interest entities”, leading to “tournament competition” that prioritizes expanding the scale of new energy investments while neglecting technological quality. Secondly, fiscal decentralization initially demonstrates synergistic effects, promoting the development of region-specific technologies (e.g., coastal areas focusing on offshore wind power and inland regions developing photovoltaic systems). However, it subsequently induces fragmentation effects, such as increased system integration costs due to inconsistent cross-regional technical standards and reduced long-term R&D investments under local debt pressures. Thirdly, fiscal decentralization encourages provincial governments to make use of local experimentation (e.g., pilot zones), which intitially speeds up technological innovation in renewable energy adoption but leads to inefficiencies later on.
Based on this, hypothesis H3 is proposed:
Hypothesis 3 (H3). Fiscal decentralization induces a leftward shift in the inflection point of the U-shaped curve effect of technological innovation in renewable energy concerning carbon emission efficiency, while simultaneously exerting a negative moderating role.