Importing innovation or indigenous innovation: Evaluating the effect of climate finance on promoting environmental sustainability in developing countries
Summary. Climate finance reduces CO2 emissions in developing countries by approximately 3.31% per standard deviation increase, but works primarily through importing external innovations rather than fostering indigenous innovation. The mechanism fails in least developed countries, where climate finance shows no significant emissions reduction and sometimes increases carbon output. Indigenous innovation pathways remain underutilized despite their potential.
Cite this article
Zhang, J., Li, Y., Du, R., & Hua, X.. (2025). Importing innovation or indigenous innovation: Evaluating the effect of climate finance on promoting environmental sustainability in developing countries. Energy Economics. https://doi.org/10.1016/j.eneco.2025.108726
Zhang, Jinhua, et al. “Importing innovation or indigenous innovation: Evaluating the effect of climate finance on promoting environmental sustainability in developing countries.” Energy Economics, 2025. https://doi.org/10.1016/j.eneco.2025.108726.
Zhang, Jinhua, Yafei Li, Ruonan Du, and Xiuping Hua. 2025. “Importing innovation or indigenous innovation: Evaluating the effect of climate finance on promoting environmental sustainability in developing countries.” Energy Economics. https://doi.org/10.1016/j.eneco.2025.108726.
@article{zhang-2025-importing-innovation-indigenous-innovation-evaluating,
title = {Importing innovation or indigenous innovation: Evaluating the effect of climate finance on promoting environmental sustainability in developing countries},
author = {Jinhua Zhang and Yafei Li and Ruonan Du and Xiuping Hua},
journal = {Energy Economics},
year = {2025},
doi = {10.1016/j.eneco.2025.108726},
url = {https://doi.org/10.1016/j.eneco.2025.108726}
}
TY - JOUR TI - Importing innovation or indigenous innovation: Evaluating the effect of climate finance on promoting environmental sustainability in developing countries AU - Jinhua Zhang AU - Yafei Li AU - Ruonan Du AU - Xiuping Hua JO - Energy Economics PY - 2025 DO - 10.1016/j.eneco.2025.108726 UR - https://doi.org/10.1016/j.eneco.2025.108726 ER -
Details
- DOI
- 10.1016/j.eneco.2025.108726
- Categories
- climate-and-environment, indigenous-innovation, funding
- Added
- 2026-04-28