Does intellectual property rights protection matter for low-carbon transition? The role of institutional incentives

Abstract

Intellectual Property Rights Protection (IPRP) can affect knowledge dissemination and talent flow. However, few studies have examined its effect on regional low-carbon transition and the low-carbon economy. Using carbon emission efficiency (CEE) to measure China's low-carbon transition, we consider the “National Intellectual Property Rights Demonstration Cities” policy as a quasi-experiment and apply a staggered difference-in-differences model to examine IPRP's effect on CEE. We find that IPRP boosts CEE through green innovation and energy intensity and is stronger in coastal, eastern, resourced-based, and big cities. Finally, the significantly positive spillover impact of IPRP boosts CEE in adjacent cities. This study highlights the critical role of the institutional environment in driving low-carbon transitions, offering a foundational framework for developing countries to promote IPRP.