Can technological innovation help China take on its climate responsibility? An intertemporal general equilibrium analysis

► We examine the effect of China's technological innovation to curb its carbon emissions. ► A mechanism of R&D-induced technical change is incorporated into an intertemporal CGE model. ► Private R&D efforts and public R&D intervention are insufficient to achieve climate target. ► A carbon tax is indispensable to achieve climate target but at the cost of output losses. ► Induced technical change can partially mitigate the deadweight loss incurred by carbon tax.