The spillover effect of sudden environmental disasters on energy technology innovation: evidence from China

Abstract

PurposeExamine the effects of sudden environmental disasters on the advancement of both renewable and conventional energy technologies.Design/methodology/approachUtilizing panel data from 31 Chinese provinces spanning 2011 to 2022, the SEM (Spatial Error Model) dual fixed model is utilized to examine the impact of sudden environmental disasters on energy technologies.FindingsThe findings reveal that: (1) Sudden environmental disasters exert a markedly positive influence on the Innovation of Renewable Energy Technologies (IRET), while their impact on conventional energy technologies is positively non-significant. (2) Sudden environmental disasters not only significantly enhance innovation in local renewable energy technologies but also extend this positive influence to neighboring regions, demonstrating a spatial spillover phenomenon. (3) Research and Development (R&D) funding serves as a partial mediator in the relationship between sudden environmental disasters and renewable ETI. In contrast, Foreign Direct Investment (FDI) exhibits a masking effect.Originality/valueConsequently, the study advocates for intensified efforts in post-disaster reconstruction following abrupt environmental events, an elevation in the quality of foreign direct investments, and leveraging research funding to catalyze innovation in renewable energy technologies amid unforeseen environmental crises.