Fostering social innovation in the energy transition: entrepreneurial solutions for a sustainable economy

Social innovation is recognized as a crucial catalyst for the transition to sustainable energy. This paper explores how entrepreneurial initiatives contribute to this transformative process within the Chinese context. With a sample of 276 Chinese prefecture-level cities from 2004 to 2019, this paper provides detailed empirical evidence on the entire landscape of localized entrepreneurial endeavors that shape the evolution of the energy sector toward sustainability. Employing panel estimator models, results show three main findings: a significant positive relationship between social entrepreneurship and sustainable energy adoption. Regional disparities in the effectiveness of these entrepreneurial solutions. Local governance structures have a considerable impact on the viability of social innovation in energy. A policy implication is to enhance policy support for social entrepreneurs; different strategies are needed for different local contexts to maximize social innovation’s potential impact on the energy transition.