Is low-carbon energy technology a catalyst for driving green total factor productivity development? The case of China

Green total factor productivity is a vital measure of sustainable progress, holding immense implications for attaining both economic growth and environmental preservation in a mutually beneficial manner. Focusing on green total factor productivity, this paper examines its nexus with low-carbon energy technology using the Instrumental Variable Generalized Method of Moments (IV-GMM) model, based on a panel dataset in China during 2005-2018. This paper also examines the asymmetric impact of low-carbon energy technology on green total factor productivity. In addition, the moderating and mediating effects are checked. The main findings are that (1) low-carbon energy technology is a promoting factor for green total factor productivity. (2) Low-carbon energy technology exerts a more prominent marginal impact on green total factor productivity when green total factor productivity is at higher quantile levels. (3) Renewable energy generation not only drives green total factor productivity directly, but also further increases the promotion effect of low-carbon energy technology on green total factor productivity, showing a positive moderating role. (4) Energy structure transition and industrial structure transition are two internal impact mechanisms between low-carbon energy technology and green total factor productivity. These findings suggest that the government can promote green total factor productivity development by developing policies related to low-carbon energy technology and fully releasing the effects of technology on sustainable development.