Green R&D Efficiency and China's Industrial Carbon Intensity: New Evidence From a Spatial Perspective

ABSTRACT Optimising the allocation of limited research and development (R&D) resources significantly enhances the environmental benefits. Based on the innovation value chain theory, this study defines green R&D efficiency and investigates its impact on industrial carbon intensity from a spatial perspective. Using the spatial Durbin model, the results indicate that green R&D efficiency reduces industrial carbon intensity both locally and in neighbouring provinces. Endogenous bias and robustness check further confirm these findings. The key mechanisms driving this effect include green output efficiency and green industrial transformation. Additional analysis manifests that the reduction effect is more pronounced during the development stage of green R&D activities than during the research stage. However, both stages work synergistically to reduce industrial carbon intensity. Environmental regulation and a free market environment positively influence the environmental performance of green R&D efficiency. Finally, policy recommendations are provided.