China's low-carbon technology trade: Facts and implications -

Kevin P. Gallagher, Renliang Liu, Jiaqi Lu, Ruyu Yin, Miaojie Yu, Praveena Bandara

"This study examines China's evolving role in global low-carbon technology (LCT) trade and its impact on climate mitigation. The novel data suggests China's transition from a net importer to a net exporter of LCTs over the past three decades. Employing a gravity-equation framework, we identify the economic and institutional factors that drive bilateral LCT flows. Fixed-effects regressions show that China's LCT exports significantly reduce partner-country CO₂ emissions, measured in total, per-capita, and intensity terms, and that these reductions are larger for high-income partners and for the energy-storage and pollution-control LCTs. We further find that partner-country human capital, political stability, and development assistance amplify these environmental benefits. We conclude with policy recommendations including sustained R&D investment, stable export prices, encouragement of outward FDI, further trade liberalization and improved international dialogue on capacity issues to advance global sustainable trade and decarbonization."

https://www.sciencedirect.com/science/article/abs/pii/S1043951X25001038#f0020

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