Government corruption, market segmentation and renewable energy technology innovation: Evidence from China

Abstract

Due to global warming and increasingly severe resource and environmental constraints, the role of renewable energy in reducing pollutant emissions and mitigating environmental degradation has gradually attracted the attention of all countries. This study examines the relationship between government corruption, market segmentation, and renewable energy technology innovation. The regression results show that government corruption can increase the degree of market segmentation, and both government corruption and market segmentation can significantly reduce regional renewable energy technology innovation. Further analysis shows that the improvement in market segmentation can lead to a negative moderating effect of corruption on renewable energy technology innovation. In addition, corruption and market segmentation have complementary effects on the impact of renewable energy technology innovation. The improvement of corruption level can increase the negative influences of market segmentation on renewable energy technology innovation. Similarly, the higher degree of market segmentation can increase the restraining effect of corruption on renewable energy technology innovation. Therefore, this study provides a valuable reference for all countries to accelerate the construction of regional market integration, break through interprovincial barriers, and improve renewable energy technology innovation.

Keywords: Dynamic panel model; Government corruption; Market segmentation; Renewable energy technology innovation.