Carbon Dioxide Emission Peak and Green Innovation-Driven — Research of Escaping Middle Income Trap for China

Abstract

This study explains and demonstrates whether China has the capability to avoid the Middle Income Trap. The 19th National Congress of CPC report points out: by 2035, China will become an international leader in innovation. At present, China is in the juncture of changing the mode of development, optimizing the economic structure and transforming the growth momentum. The juncture means that it is possible to be stagnation or retrogression of national economy as the national ability of innovation is insufficient, then sticking in the middle-income trap (MIC) for a long time. In this paper, we used the TFP to prove that the input-output ratio of different regions of China, with the per capita GDP and carbon emissions are fitting again, dividing China into optimized zones and non-optimized zones. It can be seen from the results that the optimized zones have achieved the peak of carbon emission and had relative advantages in green innovation. However, if China wants to achieve her overall carbon emissions and get out of the middle income trap, she must optimize the development zones to spillover technologies and talents.