Impact of cutting-edge hybrid electric vehicle technological innovation on carbon emissions in China

Abstract

This study explores the impact of hybrid electric vehicle technology innovation on China's carbon emissions (CO₂e). Using Fully Modified Ordinary Least Squares and Dynamic Ordinary Least Squares, our econometric analysis shows that a 1 % increase in IHEVTs corresponds to a 0.17 % reduction in CO₂e. In comparison, a 1 % increase in the green digital economy is associated with a 0.31 % decrease in CO₂e. This emphasizes the role of innovation and digitalization in emission control. Expansionary fiscal policies and GDP growth boost CO₂e by 0.34 % and 0.31 %, respectively, underscoring the environmental impact of economic expansion. Conversely, contractionary fiscal policies and renewable energy consumption lead to CO₂e declines of 0.46 % and 0.31 %, highlighting the importance of prudent policies. These findings demonstrate the synergistic impact of technological innovation and policy on China's emissions, providing essential perspectives for achieving long-term growth.