Driving force for China's economic development under Industry 4.0 and circular economy: Technological innovation or structural change?. (20th October 2020)

• Record Type: Journal Article
• Authors: Zhou, Xiaoxiao; Song, Malin; Cui, Lianbiao
• Is Part Of: Journal of cleaner production. Volume 271(2020)
• Publication Date: 2020-10-20
• Subjects: Industry 4.0 -- Circular economy -- Economic growth -- Biased technological progress -- Industrial structural change; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2020.122680
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: The integration of the circular economy (CE), a model promoting the cyclical use of resources, and Industry 4.0, an intelligent-based approach to manufacturing, is expected to achieve sustainability. Finding the most suitable path for technological progress and structural change to promote economic growth is the key to adopting Industry 4.0 technologies and successfully transforming to a CE, and thus, key to China achieving sustainable development quickly. This study identifies the joint effects of energy- and environment-biased technological progress and multi-dimensional industrial structural change on economic growth, and empirically verifies the specific effects within China. Our results are as follows. First, pollution abatement technological progress, backstop technological progress and autogenous structural ecologicalization are the main drivers of sustainable economic growth. Second, innovation policies have a positive impact on national economic growth by promoting pollution abatement technological progress. Finally, in sub-regions' regression, backstop and environment technology, and structural ecologicalization promote eastern China's economy, while policies drive environment technological progress and structural ecologicalization to stimulate economic growth in central and western China. Our results imply that policymakers should take into consideration the readiness levels of each region regarding the adoption of Industry 4.0 and circular economy, and that the government should consider and ensure the participation of all stakeholders, including firms. Highlights: Focus on the economy's driving forces under Industry 4.0 and circular economy. Environment and new-energy technological progress promote economic growth in China. Innovation policy drives economic growth by inducing biased technological progress. Backstop and environment technological progress benefit eastern and central China. Industrial policy works well on structural ecologicalization and regional economy.